Rupiah may reach 9,200 per dollar by year-end

The rupiah is predicted to continue strengthening to Rp 9,200 per US dollar by the end of this year as the dollar weakens against other currencies, said economist Fauzi Ichsan.

The figure shows the rupiah-per-dollar rate reached an average 10,190 throughout 2009, the Standard Chartered Bank economist said Wednesday.

As the global economy recovers next year, the rupiah will hover at 9,275 per dollar on average next year, he said. The rupiah may strengthen to 9,100 per dollar by the end of 2010.

Finance Minister Sri Mulyani Indrawati said the rupiah was moving toward its fundamental rate.

"The constellation of world currencies is now in the process of finding equilibrium ... If the fundamentals remain good, the exchange rate will likely reflect its supporting factors," she said