Rupiah to weaken to 9,700 in Q1
The rupiah may weaken to Rp 9,700 per US dollar in the first three months this year as investors buy the dollar due to uncertainties in the global economy, Standard Chartered Bank said.
"There will be a question in valuation, a question in the recovery," Callum Henderson, the bank's global head of FX research, told a forum on Monday.
But he said the rupiah would then strengthen to 8,900 per dollar by the end of 2010, based on Indonesia's strong economic fundamentals.
The economy is estimated to expand 5.5 percent this year, the government said, up from about 4.3 percent in 2009.