Rupiah Remain Stable Against US Dollar

Jakarta (Antara) - The Indonesian currency rupiah remained stable in Thursday morning's trade under the protection of Bank Indonesia (BI). "Rupiah was still well safe amid pressure from falling Asian currencies especially yen," Samuel Sekuritas' economist Lana Soelistianingsih said. Rupiah traded at the level of 9,762 in interbank transaction losing slightly in value from 9,760 per US dollar. Debate on proposed increase in the prices of subsidized oil fuels is still in progress and a decision is expected to be announced after a month from now, Lana said. "Increase in the prices of subsidized oil fuels is expected to redress the country's balance of payments and strengthen rupiah to the level of 9,500-9,700," she predicted. She predicted the country's inflation could rise to 7.2 percent - 7.7 percent as a result of oil fuel price hikes. Bank Indonesia, however, would not likely react out of proportion in raising its benchmark interest rate currently 5.75 percent, she said. "Most likely BI will raise the BI Rate by 50 basis points to 6.25 percent to prevent a surge in inflation ," she said. Trust Securities's chief researcher Reza Priyambada said the domestic market is still awaiting a government announcement about its plan to raise the oil fuel price hike. (*)