Rupiah weakening temporarily, BI says
Aditya Suharmoko, The Jakarta Post, Jakarta | Fri, 05/21/2010 5:35 PM
The central bank considers the weakening rupiah is temporary and it will continue to guard the local currency, an official says.
"BI will scrutinize this and of course this is only temporary ... We'll see a development," Bank Indonesia (BI) Deputy Governor Budi Mulya said Friday at the Economic Coordinating Ministry.
Mulya said the euro debt crisis was the reason the rupiah weakened against the US dollar. "It's cause relates to the uncertainties on solving the euro debt crisis. The situation isn't entirely clear though," he said.
BI expects the euro debt crisis to be resolved soon, he added.
The rupiah fell to Rp 9,342 against the greenback during mid-session Friday.
Economic Coordinating Minister Hatta Rajasa said Indonesia basically remained strong. "As long as the fundamentals are strong, I'm not too worried," he told reporters at a gathering.
