JAKARTA (Antara): Rupiah plummeted on the Jakarta Inter Bank Spot Market on Tuesday morning to Rp 9,405/9,415 to the U.S. dollar compared to Rp 9,375/9,385 at the closing session on the previous day, an observer has said.
Money market observer Edwin Sinaga said here Tuesday the Subprime Mortgage case (financial crisis) in the U.S. still triggered worries especially on the prospect of the US economic growth.
Thus local market agents preferred holding US dollars to rupiahs although Bank Indonesia (the central bank) remained to maintain the rate of the Indonesian currency, he said.
The central bank even expected rupiah would rebound tothe level of Rp 9,000 to the U.S. dollar, he said.
The Indonesian unit dropped because market agents worried about the economic condition in the US which is a potential market for export products of Asian countries, he added.
He pointed out that the Subprime Mortgage case in the U.S. has actually not abated and even tended to continue, he said. (***)
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