VIVAnews - UBS Securities Indonesia expects the rupiah exchange rate in 2010 may touch the level of between IDR9,000 and IDR9,500 against US dollar. Emerging Market Strategy Executive Director Nizam Idris said the Rupiah may hit IDR9,400 against US dollar by the end of 2010 and IDR9,200 against US dollar in late 2011.
Nizam said the Rupiah appreciation is due to the massive capital inflow to the country.
"The strong capital inflow causes the Rupiah to appreciate," said Nizam on Tuesday, March 9. However, Nizam warned the government to remain cautious over the capital inflow.
Nizam said he is not against Bank Indonesia's policy which modifies the Bank Indonesia Certificate auction system from weekly to monthly basis.
"Earlier, the money stays on a weekly basis while now it can remain in Indonesia longer," he said.
"The Rupiah may appreciate between IDR9,000 and IDR9,500 since the US dollar may rebound," he said.
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Translated by: Bonardo Maulana W
