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UPDATE 1-Indonesia says rupiah fall 'illogical', warns speculators of action

UPDATE 1-Indonesia says rupiah fall 'illogical', warns speculators of action UPDATE 1-Indonesia says rupiah fall 'illogical'...

UPDATE 1-Indonesia says rupiah fall 'illogical', warns speculators of action

UPDATE 1-Indonesia says rupiah fall 'illogical', warns speculators of action Reuters Reuters Tuesday September 04, 2018 3:37 AM
* Rupiah continues to slide, hits 14,920/dollar
* Technical problem with trading on Friday has been resolved
* Govt will act firmly against speculators - finance minister (Adds details, quotes) By Maikel Jefriando and Tabita Diela JAKARTA, Sept 4 (Reuters) - Indonesia's coordi nating minister for economic affairs on Tuesday called the rupiah's depreciation since Friday "illogical" and said the currency's drop did not reflect the state of the economy. Darmin Nasution said after meeting President Joko Widodo that authorities are examining the reasons behind the rupiah's sharp drop in recent days.

"There were things that pushed the depreciation further, that we think makes it illogical. We're looking to find out why beside Argentina's problem," Nasution said after the session attended by other ministers and the central bank governor. The rupiah hit its weakest in three years on Friday and this week has reached its lowest point in 20 years. At 0730 GMT on Tuesday, the rupiah was at 14,920 to the dollar, 1.58 percent below the Aug. 30 closing.

The rupiah has lost nearly 9 percent of its value this year, making it the second worst performing emerging Asian currency after the Indian rupe e , as investors cut holdings of assets due to fears of contagion from economic woes in Argentina and Turkey. Nasution told reporters the government had discovered speculative trading of the rupiah and a technical problem with dollar-rupiah quotations.

QUESTION ON QUOTATIONS Bank Indonesia and the Financial Services Authority (OJK) had received complaints from fund managers that some commercial banks did not provide dollar-rupiah quotation on Friday so they were not able to trade, Nasution said. "I don't know what happened... but immediately it was resolved," he said. "My point is there are technical problems that should not have occurred, but they happened." Separately, Finance Minister Sri Mulyani Indrawati said
authorities would closely monitor market players and take firm action against any speculators. "We will distinguish the genuine economic actors who really work hard to safeguard the economy, safeguard the ir companies and economic activities... from those who seek profit-taking," said Indrawati, who did not specify what sanctions the government could take against speculators. BI has raised interest rates by 125 basis points since mid-May and spent billions of dollars in intervention to defend the rupiah. As part of efforts to support the rupiah, the government has sought to widen use of biodiesel to reduce imports of oil paid for in dollars. An announcement on import tariffs applied to hundreds of consumer goods is due on Wednesday, Indrawati said. At Tuesday's meeting, Widodo demanded his cabinet map in detail the import requirements for projects such as power plants, bridges and airports to estimate coming dollar demand, Nasution said. (Reporting by Maikel Jefriando and Tabita Diela; Writing by Gayatri Suroyo; Editing by Ed Davies and Richard Borsuk)

Messaging: Disclai mer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.Source: Google News Indonesia | Netizen 24 Indonesia

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