Rupiah up driven by market expectation

Aditya Suharmoko, The Jakarta Post, Jakarta | Thu, 01/07/2010 2:28 PM

The central bank said Thursday the current strengthening rate of rupiah against the US dollar was due to the capital inflow following the bank's move to keep its policy rate.

On Wednesday, Bank Indonesia (BI) maintained its rate at 6.5 percent for the fifth straight month after seeing no inflationary pressures within the first half of 2010.

"It is market sentiment that affects (the strengthening rupiah), it is their expectations," acting BI governor Darmin Nasution said Thursday.

The rupiah reached 9,230 per dollar on Thursday, Bloomberg reported.