Rupiah slids 3.23 percent to 9,585 to a dollar

The Jakarta Post | Mon, 10/06/2008 6:18 PM | Business

Echoing other Asian currencies, the rupiah had dropped by 3.23 percent to Rp 9,585 to the US dollar by the end of trading on Monday, as the stock market tumbled on fears of a widening global liquidity crisis.

The Indonesian government said on Sunday that the liquidity crisis would affect global demand on the country's exports and could affect domestic GDP growth.

Resuming trading after a four-day break last week marking the Idul Fitri Islamic holiday, the benchmark index shed 183.77 points, or 10.03 percent, to close at 1,648.7 points.

The rupiah joined other Asian currencies such as Korea's won which declined by 12.43 percent, India's rupee by 4.93 percent, Singapore's dollar by 3.91 percent, Philippines' peso with 2.73 percent, Thailand's bath by 1.51 percent and Taiwan's dollar by 1.03 percent.

According to Bloomberg, the rupiah slumped to its weakest since August 2007, on speculation that investors would avoid emerging-market assets because of concerns that more banks would fail and global economic growth would slow.

The central bank said on Sunday it will intervene to keep the rupiah at a desired level as it had enough foreign exchange reserves. (and)

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