Major

The euro fell against the dollar and the yen in Asian trade, depressed by uncertainty over how European leaders will tackle Greece's debt crisis. The euro dropped to 1.3453 dollars in Tokyo afternoon trade from 1.3498 in New York late yesterday. In early London market today, the onecurrency dropped further to below 1.34, its lowest since May 2009. Speculation mounted that disagreement among E.U. countries would encourage them to push for Greece receiving aid from the International Monetary Fund, instead of trying to craft an internal package. Meanwhile, the dollar gained against a basket of currencies. The US Dollar Index (.DXY) soared to 81.441, highest since June 2009, compared to 80.896 previously ended. Against the yen, the greenback traded stable at 90.56 during Asia trading hours, up from 90.40 on last night trading in New York. However, the dollar rose to 91.17, a one-month high against the yen during London's early trading hours on the safe-haven's sake. Japan's exports surged 45.3 percent from a year earlier to 5,128.67 billion yen in February, led by auto shipments to the US and electronics parts to Asia. It was the third-biggest annual gain on record. The overall trade surplus came to 651.0 billion yen in the month—bigger than market's expectation— soaring from the year-before surplus of 70.8 billion yen.

Forecast:

Market data on durable goods and new home sales will be released tonight. The market expects a better result on new home sales, boosting the greenback's attractiveness. Expected range: 90.50 – 91.50

USD/IDR

The rupiah continues to trade strong amidst foreign investment inflow to the local stocks and bonds markets. The pair was supported by dollar buying demand from corporate, and traded between 9107 - 9135. Meanwhile, rating agency Fitch released a statement that the country's policy reform holds the key to its debt rating upgraded to investment grade. The agency upgraded Indonesia's rating to 'BB+' in Jan 2010, a notch below investment grade, primarily in recognition of the improvements to sovereign credit-worthiness arising from fiscal policy discipline and falling debt ratios. Meanwhile, the results from today's SBI auction are as follows: 2-month at 6.32334%, 3-month at 6.55365% and 6-month at 6.67822%.

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Major CCY

The euro hovered at its weakest levels in three weeks on Monday and the dollar remained firm as Europe remained divided over aid to debt-burdened Greece ahead of a summit later this week. Uncertainty over Greece and a surprise rate hike by India kept investors cautious about riskier assets, but it lacked momentum to push higher. Japanese domestic markets were closed for a national holiday, leaving yen trade thin. Final approval of healthcare reform by the U.S. House of Representatives saw little immediate dollar reaction. The dollar traded at $1.3522 per euro from $1.3530 last week, after earlier rising to $1.3498, the highest level since March 2. The yen traded at 122.45 per euro from 122.51, after earlier climbing to 122.17, the strongest since March 10. Japan's currency was at 90.50 per dollar.

Forecast:

The dollar will benefit more after a little risk- negative after monetary tightening in India, that also add speculation on more central banks will follow India in raising interest rates boosted demand for safer investments. Expected range: 90.25 – 90.75

USD/IDR

The Rupiah was slightly depreciated from strongest level in 7 months, due to correction in stock market, and regional sentiment. Month-end corporate demand also contributing in today's rupiah weakened. The rupiah traded in the range 9110 – 9130. Opened higher at 9130 but went lower again to lowest at 9110, before closed at 9122. In addition, Senior Deputy Governor Darmin Nasution commented today that Indonesia's central bank doesn't see a need to review its key interest rate. The comments wiped the speculation on interest rate hike next month, as other Asian countries such Malaysia and India already hiked its benchmark rate in the last meeting, and Thailand also indicate to raise its borrowing cost in the coming month.

In other news, Indonesian Finance Minister Sri Mulyani said fast rise in rupiah will not hurt exports. According to the minister, the current level of rupiah value against foreign currencies, especially the U.S. dollars, remains within safe limits for the country's exports. Tomorrow will be IDR bonds auctions for 1yr, 15 yrs, 20 yrs, and 28 yrs tenors, with target auction of IDR 5 trillion.

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USD/JPY

Supported by a solid retail sales data released on Friday last week, the U.S. dollar continued to trade higher against the yen and other major currencies on Monday on hopes of a durable economic recovery while weaker Asian stock market prompted sell off from the riskier assets such as the euro and sterling which have been suffered by sovereign debt concerns. However, the dollar limited its gain on Tuesday after European Union Finance Ministers backed plans to help Greece if needed and Standard & Poor's affirmed its ratings on the debt stricken country. The dollar remained its losses against the euro and yen after the Federal Reserve held U.S. interest rates unchanged and reiterated a pledge to keep rates exceptionally low for an extended period. Meanwhile, the yen edged up to 90.04 from around 90.35 per dollar on Wednesday after BOJ decided to double the size of a lending operation it put in place at an emergency meeting in December but did not extend its duration. However, the yen then reversed its direction and drop to near 90.69 yen per dollar as strong dollar buyers from Japanese life insurers encouraged the yen buyers promptly reversed its positions to sell back the yen after it failed to break below 90 level with some market players disappointed with the BOJ's decision for not extending its operation to six months as expected. On Thursday, the dollar rebounded and rose against higher yielding currencies due to some short covering dollar positions. Meanwhile, the currency remains its strength with the euro fell broadly in the late Tokyo market after a newswire report saying Greece is not hopeful of receiving aid from euro zone members which added to uncertainty over a resolution to its debt problems. In fact, the euro was stabilized afterwards on Friday though remained under pressure on renewed concern about Greece after Athens said it may not be able to achieve its promised deficit cuts if its borrowing costs remain so high.

Forecast:

Market is now focus on Canadian consumer inflation data for February and retail sales for January due later tonight as market is speculating an interest rate hike while the pair may hit parity in the near term. Most importantly, markets are waiting for the development of Greece's deficit problems whether Athens can secure aid from euro zone members at EU summit next week.

Expected range for the week ahead: 89.00– 91.00

USD/IDR

On Monday, the USD/IDR was traded in a thin range between 9162 and 9182 with quiet trades ahead on the national holiday for Nyepi on the next day. Furthermore, the dollar was opened lower at 9155 rupiah on Wednesday in line with the rally in the Asian stock market due to the Federal Reserve's ultra loose policy which successfully brought the risk appetite back into the market. The pair was seen hit the lowest level of the day at 9100 afterwards with the JKSE traded up above 3% at the same time. The rupiah was closed at 9117 while the JKSE ended positive to 2756.262 (+3.25%) at the end of the day. In news, Finance Minister Official Rahmat Waluyanto said that the government will issue a global sukuk in September this year, prefereably after the fasting month. Separately, Indonesia's central bank has announced a 2, 3, and 6 month SBI interest rate of 6.35218%, 6.52418%, and 6.62483% respectively in an auction at the same day with no SBI 1 month this time. On Thursday, in line with the dollar's rebound from the overnight trading, the rupiah was opened slightly higher at 9120 per dollar with thin ranged between 9120 and 9135. Month end corporate demands as well as the resurfaced of Euro zone's crisis concern have prompted the risk aversion and thus prevented the rupiah to further strengthen against the dollar. On Friday, the USD/IDR continued its strength and opened at 9130 due to the higher tension in the euro zone. However, the pair was dragged lower and hit 9095 in line with the gain in the JKSE by 0.21% especially after BI Senior Deputy Governor Nasution mentioned that the central bank expects the rupiah to appreciate further. In fact, it is suspected that the dollar has been sold as a preparation of bond purchased which will be issued next Tuesday. Separately, according to Finance Minister Sri Mulyani, March annual inflation should be higher than that in February but will likely meet 2010 inflation target if the rupiah strength is able to contain prices while she also ascribed the upward trend to rising commodity prices.

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USD/JPY

The dollar rose broadly on Thursday, recovering some losses made the previous day against higher-yielding currencies as investors covered short dollar positions. The euro tumbled broadly after a newswire report saying that Greece is not hopeful of receiving aid from other euro zone members. A Greek official quoted in the report said the country was growing increasingly pessimistic about the prospect of help at a European Union summit on March 25 and may seek IMF aid during the April 2-4 Easter weekend. Euro selling was sparked after the report and dropped as far as $1.3657, down 0.5 percent, from a five-week high of $1.3819 the previous day. The euro was struggling as other euro zone nations have yet to give concrete details on how they would help Greece resolve its financial woes. Against the yen, the dollar was unable to make gains versus the lowyielding Japanese yen, trading with losses of around 0.2 percent to 90.10 yen as concern of escalating trade tension between the US and China regarding China's yuan policies.

Forecast:

Market players will closely watch on US consumer inflation readings for February on Thursday. Expected range: 89.50 - 90.30

USD/IDR

The pair was opened at 9120 level, and traded in narrow range between 9120-9135 level. The pair was dragged to 9135 level in the day, after a report said Greece is not hopeful of aid from the March 25 European Union summit. Besides that, investors still continued to eye growing friction between China and the US and other Western powers who are pressing Beijing to allow the yuan currency to rise. Market closed at 9123. In addition, the finance ministry explains that Indonesia aims to raise 5 trillion rupiah ($ 549.1 million) from an auction of government debt paper on March 23. The proceeds will be used to help plug the budget deficit this year, which is forecast at 2.1 percent of gross domestic product (GDP) and to repay maturing bonds.

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FOREX DAILY REPORT

Mar 17, 2010

USD/JPY

Yen was down against the dollar toward London open after BOJ acted doubling the scale of a three-month fund supply to banks to Y20 trio, in regards to ease its monetary policy to beat deflation. It fell to 90.69 level, reversed its gain earlier from 90.02 hit before BOJ announcement. Some yen option-related selling also seen from hedge fund since 90 low level. Yen also down against the euro, hit 125.00 from 124.07 earlier, dragged by lower yen against the dollar. News of S&P removed its credit negative watch to Greece also seen to put Yen even under pressure against the euro.

Forecast:

Yen might be kept under pressure in overnight trade, but range will be limited with repatriation flows remain intact capping the currency's loss against the major currencies. US data released later on the day is Producer Price, but with unchanged outlook from Fed on its monetary policy, we suspect effect from this data will be marginal. Expected range: 90.30-91.30

USD/IDR

The pair was opened at 9155, in line with dollar weak elsewhere IDR is also benefitted from the sentiment, it got stronger since early trade triggered by aggressive offshore players' selling. Most inflows still went to local stocks (JKSE +3.25%), bonds and also SBI market. While BI decision to shift from short term SBI to longer ones doesn't seem to ease demand for SBI. BI data showed, offshore holdings on SBI hit IDR 66.03 trio, which was the highest since January 2010. IDR hit the high of 9100 in midday trading before coming back to 9117 toward market closing. It seemed state banks defended IDR's gain in order to prevent the currency moved rapidly; some corporate demands also seen limited IDR's gain around 9100 low level.

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USD/JPY

The dollar fell to its lowest in more than two months against the yen, as the dollar slid broadly.

However, in Asia markets, the dollar was flat against the yen,

The yen has been strengthening across the board in the past weeks, hitting a year high against the

euro, as the yen benefits from general risk aversion.

The potential for fund repatriation by Japanese corporates and investors before their end-March book

closing may also boost the yen and the drive the dollar lower against the Japanese currency in the near

term.

Furthermore, before the Friday's payroll, investors also await US ADP employment report due

tonight, which is forecast 20,000 jobs were lost in February vs a loss of 22,000 January.

Forecast: Markets are awaiting announcement from Greece later. It seems positive but the support for euro could be limited as Greece still faced some debt issues. Expected range: 88.20-89.20

USD/IDR

The dollar was opened lower at 9270 from yesterday's close 9300, in line with the weakening of the dollar against major currencies. Yet, there was no follow trough selling, and it rose back to 9295. Some were focusing on the bailout inquiry, but it should remain tentative until the bailout inquiry is resolved. Moreover, the central bank is expected to keep rates unchanged at 6.50% tomorrow, as the price pressures are likely to remain manageable due to a strong rupiah which helps to reduce imported inflation. Therefore, there will be no market impact seen if the rates are kept on hold.

Closing market on Mar 3, 2010 Jakarta market at 04:30 pm. on Mar 3, 2010

Nikkei : 10253.14 (+31.30) USD/JPY : 88.65/88.75

JGB : 1.330 (0.00) EUR/ USD : 1.3645/1.3655

JSI : 2567.089(-9.502) USD/IDR : 9277

Closing market on Mar 2, 2010 EUR/JPY : 121.10/121.30

DJI : 10405.98 (+2.19) BTMU JIBOR 1 mo. : 7.25%

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Major

The GBP remained in focus following a sharp drop against the U.S. dollar yesterday on concerns about the country's weak fiscal position and uncertainty over a looming election. Expectations that a large amount of sterling may be sold to fund the US$35.5 billion purchase of an America's big insurance company's Asian life-insurance business by a U.K. insurer big name also weighed on the pound. The pound was recently trading at $1.4870, down from $1.4993 in New York late yesterday. However, it held above Monday's low of $1.4785—the currency's weakest level since May 1, 2009. The Australian dollar got an early lift against its U.S. counterpart in Asian trading Tuesday after the Australian central bank raised interest rates as expected by a quarter point to 4.0%, but the move only briefly stalled the greenback's overall rise. The dollar index (.DXY), which measures the greenback against a trade-weighted basket of six major currencies, rose to 81.011, from 80.753 in late North American trading yesterday. The dollar edged up to 89.23 yen, from 89.06 yen late last night.

Forecast:

Market has their eyes still on fiscal deficit issues that overwhelm the European countries, including the U.K.; pessimistic sentiment towards the current and outlook of global economy drives up risk aversion and push JPY higher as safe haven.

Forecast USD/JPY range: 88.50 – 89.50

USD/IDR

The Indonesian rupiah traded near the strongest level in more than five weeks on optimism an export recovery is gathering pace. Foreign investors bought $20 million more local shares than they sold yesterday, helping lift the Jakarta Composite Index higher for a second day. Exports, which account for about 29% of Indonesia's GDP, rose in January by the most since at least December 1995. Policy makers will likely keep the benchmark interest rate at 6.5% on March 4. The rupiah strengthened to 9270 even in the midst of the plenary session of voting for Century Bank's bail-out decision. The pair eventually closed at 9305.

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USD/JPY

On Monday, the dollar was traded slightly weakened compared to last week as investors reassessed the real market condition after the surprise hike of discount rate to 0.75 percent last week while the released data of rising U.S. inflation and consumer prices were also seen to provoke the return of risk appetite. Meanwhile, the dollar extended its losses broadly and traded lower to around 90.85 yen on Tuesday on speculation about possible overseas investor demand for the yen related to one of Japanese life insurer's planned IPO and talk of investment trust outflows into overseas markets. In fact, the yen may come under pressure in the near term depending on the size of yen-selling generated by the launch of various Japanese mutual funds or toushin this week. However, in the New York market afterwards, the yen rose against the dollar after U.S. consumer confidence fell to a 10 month low in February. The news have seen directly discouraged the risk appetite and drove the dollar up against the euro and other yielding currencies with stocks and commodities traded lower following by the red line in the Asian stocks on Wednesday. The yen was strengthened to 90.10 in the morning session and stayed at around 90.24 per dollar in the whole Asian trading. Furthermore, the dollar fell against the euro and the yen after U.S. Federal Reserve chief Ben Bernanke reaffirmed expectations that the bank would keep its benchmark interest rate exceptionally low for some time. In fact, a surprise drop in January new home sales in the U.S. has seen boosted investor outlooks for low rates as well. Additionally, worries on Greece's fiscal woes and a possible downgrade of Greece, with Standard and Poor's saying that it may cut Greece's BBB+ rating by one or two notches within a month, have driven the euro lower against the dollar and the yen on Thursday with selling flows mostly by Japanese names including exporters as well as long liquidation by hedge funds and stop loss selling. The euro hit 1.3452 per dollar in the Asian trading before it rebounded to $1.3477 level while the yen rose to 89.34 per dollar.

Forecast:

For the domestic market, one of the focuses will be on the development of whether Finance Minister Indrawati and Vice President Boediono can pull through unscathed from the bailout of Bank Century. In addition, BI rate decision together with Indonesia's CPI will be also interested to watch while it is expecting a rate hold given that inflationary pressures are still manageable and rate cuts have not filtered down to the ground. In the same time, investors will be also interested in looking at U.S.'s Nonfarm payroll figures next week.

Expected range for the week ahead: 89.00– 91.00

USD/IDR

On Monday, the USD/IDR was traded between 9288 and 9305 with not much movement for the whole day. In news, according to a senior official, Finance Minister has proposed to increase the budget deficit for 2010 to 2.2% of GDP from 1.6% previously. Meanwhile, the dollar was traded on a thin range but slightly higher between 9290 and 9319 compared to the previous day's ranging. Furthermore, On Wednesday, the dollar was traded on higher ranges between 9313 and 9340 with some end of month's corporate demand. In news, according to State Enterprise Minister Mustafa Abubakar, the government and BI are urging banks to reduce borrowing costs to boost growth in the economy. Separately, SBY coalition parties continue to assert Finance Minister Indrawati and Vice President Boediono wrongdoing in the bailout of Bank Century. In addition, Indonesia's central bank has announced a 1, 3, and 6 month SBI interest rate of 6.407%, 6.59367%, and 6.6926% respectively in an auction at the same day. On Thursday, the USD/IDR was even traded higher and hit the high of 9365 mostly affected by the plunge in euro which lifting most USD against the regional currencies higher. The pair was dragged lower to 9340 due to some intervention by the central bank before it closed at 9350 at the end of the day. In news, BI Deputy Governor Sarwono said that inflation should accelerate 0.3-0.4% in February and that the full year target of 4-6% us still within reach. Additionally, he also mentioned that BI does not see the need to raise its benchmark interest rate soon. Separately, Indonesia's Finance Minister Sri Mulyani Indrawati expects the 2010 budget deficit to be 2.1 percent of GDP.

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USD/JPY

The yen retained hefty gains against other currencies on Wednesday, aided by safe-haven inflows after a slide in US consumer confidence to 10-month low stoked doubts about the pace of a global economic recovery. The data triggered concerns about the future of US consumer spending, the main hope for a sustainable economic recovery. The dollar traded at 90.22 yen on Wednesday, after felt nearly 1 percent against the yen on Tuesday. Meanwhile on Wednesday, the euro pared some losses made the previous day but remained under pressure after yesterday's German Ifo index of business sentiment dipped unexpectedly, while French household spending and Italian consumer confidence turned lower. Also, it was further hurt by a downgrade of Greece's four largest banks by Fitch, bringing back the country's woes back to the forefront.

Forecast:

The focus now shifts to Federal Reserve Chairman, who will testify before Congress on Wednesday and Thursday. Earlier this month, the Fed released his prepared remarks to be delivered before the very same US House Financial Services Committee, though the hearing never took place because of a sever snow storm. Besides that, investors will be looking for any comments on the Fed's decision late last week to raise its discount rate. Expected range: 89.85 - 90.85

USD/IDR

Rupiah opened slightly weaken on Wednesday at 9320 as US data related consumer confidence slid to a 10-month low. During the day, the pair was traded higher than Tuesday's range between 9313-9345. Besides that, the pair was also well supported by the month-end corporate demand. Market closed at 9343. In addition, a deputy governor of Indonesia's central bank said on Wednesday that inflation in February will be lower than in January due to the stronger rupiah. Meanwhile, Bank Indonesia's SBI one month auction was at average 6.407 percent (100 percent of total bids), 3 month was at average 6.59367 percent (100 percent of total bids), and six month was at average 6.6926 percent (100 percent of total bids).

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USD/JPY

The dollar weakened on Monday as investor reassessed the chances of an earlier-thanexpected interest rate hike by the Federal Reserve, prompting a degree of recovery in risk appetite. Currency market took the Fed's surprise discount rate decision last week as a signal the U.S. central bank was coming closer to tightening its benchmark rate, despite assurances from Fed policymakers to the contrary. But a benign U.S. inflation reading on Friday, with consumer prices rising less than forecast in January, caused market to pull back those rate expectations. The dollar index, which measures the dollar's value against a basket of currencies, dipped 0.1 percent to 80.570, having retreated from an eight-month high of 81.342 hit on Friday. The dollar gave up slight gains versus the yen to trade flat at 91.60 yen.

Forecast:

This week, all eyes will be on Fed chief Ben Bernanke's testimony in Congress on Wednesday and Thursday. Investor will be looking for clues on rates after the Fed surprised many by raising the discount rate last week.

USD/IDR

The pairing turned softer this morning and opened at 9300 figure, and ongoing lower to 9288 as the greenback retreated. Regional equities are somewhat firmer in Asian hours on the modest Wall Street gain and firmer Nikkei in the morning. China stocks however opened flat after an extended Chinese New Year break. Meanwhile, Finance Minister has proposed to increase the budget deficit for 2010 to 2.2% of GDP (previous: 1.6%), according to a senior official. The government plans to spend more on "energy and food price stabilization" efforts. Improved risk appetite and regional stocks seen boosting the IDR but traders are wary of fresh bidding from corporate and state banks ahead of the month-end. Then the market closed at 9305

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OFFICIAL EXCHANGE QUOTATION AND MARKET INFORMATION

-----------*******----------------

<1> BANK INDONESIA EXCHANGE RATE

(BELOW ARE YESTERDAY'S RATES, WHICH WERE TO BE ANNOUNCED AT 10:00 A.M)

BUYING : 9,278.00

SELLING : 9,372.00

<2> Currency Kind of Tran. BUYING MIDDLE SELLING REMARKS

US$ - IDR T.T. 8,990.00 9,590.00

ATM Card 9,190.00 -

M.T./D.D. 8,960.00 9,590.00

** Bank Notes 8,790.00 9,790.00

NON-EXCHANGE 9,290.00

----------------------------------

YEN - IDR T.T./M.T. 97.08 105.85

Bank Notes 93.97 109.37

NON-EXCHANGE 101.42

---------------------------------

US$ - YEN T.TT 90.60 92.60

Bank Notes 88.60 94.60

NON-EXCHANGE 91.60

----------------------------------

SPOT VALUE ON: FEB. 23, 2010 (USD/IDR)

<3> TOKYO MARKET REPORT OF US$ - YEN

Opening -------------------> : 91.96/98 TTM : 91.83

BTM TOKYO'S EXCH.RATE TTB--> : 90.83 TTS : 92.83

Yen Forward

Forward Point: 1 Month 2 Months 3 Months 6 Months 1 Year

-2 0 -3 -1 -5 -3 -13 -11 -47 -45

Cross Rate :

EUR:1.3480/1.3490 CHF:1.0870/1.0880 GBP:1.5430/1.5440 HKD:7.7670/7.7680

SGD:1.4130/1.4140 AUD:0.8920/0.8930 CAD:1.0480/1.0490 NZD:0.6970/0.6980

THB:33.21/33.24 MYR:3.4080/3.4130

<4> EURO INTEREST RATE INDICATION

PERIOD USD EUR JPY

------ --------- --------- ------

1 M/O 0.17/0.32 0.30/0.45 0.05/0.15

3 M/S 0.25/0.40 0.40/0.60 0.10/0.25

6 M/S 0.45/0.75 0.70/0.90 0.20/0.40

 

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FOREX WEEKLY REPORT

15 February – 19 February 2010

USD/JPY

This week started with a long holiday of Chinese New Year and also US market holiday for President Day on Monday. Volume was light during the holiday but the week was packed with risk event and US economic data. Greece problem, China move to hike bank reserve for the second time and a lack of clarity on the debt restructuring of government-backed Dubai World also give an impact to USD against JPY on Monday, where USD was a tad weaker at 89.98 on the JPY. But when a gauge of manufacturing in

New York state jumped in February to its highest level since October, and another report showed net overall capital inflow increased to USD 60.9 bio in December, data released on Tuesday, made USD rose 0.2% against JPY to 90.15. USD also rose 1.4% at 91.35 on Wednesday after stronger than expected US housing and industrial data and also minutes from The Fed January meeting showed policy makers saw a need to begin a program of asset sales in the near future and expect the economic recovery to continue.

On Thursday, there were a mix data on the US site, where an unexpected jump in weekly US jobless claims reduced demand for The USD, but in the other hand the government reported a higher than expected rise in January producer prices. This made the USD swung between gains and losses against other currency, but fell against the JPY after BOJ kept interest rates on hold and held off on new policy initiatives to 91.24. On the following day, after The Fed said the discount rate would be increased to 0.75% from 0.50%, made the USD hit its highest level in a month at 92.10 yen.

Forecast:

Market now waiting for US CPI figure due on Friday . USD/JPY forecast next week: 91.30-92.30

USD/IDR

The pair was opened at 9350 against rupiah on Monday Jakarta market. It eased earlier to 9340 before edged higher to 9357 toward the closing Jakarta market. Trading was thin as most Asian market was closed for the Chinese Lunar New Year holiday, with the US market also away for President's Day holiday.

The following day, the USD/IDR movement confined within 9330-9350. Activity on the market was thin as some centers in Asia are still away for Lunar New Year. With JKSE in small positive  at last indication, the pair slipped to a little lower level during closing time. The pair rose for a second day on Wednesday. The pair traded below 9300 after almost a month hovering above that level. The local bourse also rose 0.88% after gaining 1.6% yesterday. The record shows that foreign funds bought more Indonesian equities than they sold in the past five trading days. International investors also increased their holdings of local bonds to 119.01 trillion rupiah from 115.02 trillion rupiah in January. On Thursday, The pair was opened at 9320, and going higher on USD's gaining against most currencies. During the day The rupiah lowered to 9328 before closing at 9321. On Friday, The pair opened at 9345 and traded on narrow range 9340-9365 before closing at 9350.

Closing market on February 19 , 2010 Jakarta market at 4.10 pm. on February 19, 2010 JSI : 2,554.376 (-5.658) USD/JPY : 91.71/91.73 Nikkei : 10,123.58 (-212.11) EUR/USD : 1.3508/1.3510

JGB 305 : 1.330 (0.015) USD/IDR : 9350

EUR/JPY : 123.94/123.99

Closing market on February 18, 2009 BTMU JIBOR 1 mo. : 7.25%

DJI : 10,392.90 (+83.66) BTMU JIBOR 3 mo. : 7.50%

 

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Highlight:
• Indonesia: Setelah mengalami penurunan dalam dua hari berturut-turut, USD/IDR
kembali diperdagangkan di atas 9300. Pada sesi pembukaan hari ini rupiah berada
di level 9320an dan cenderung cukup stabil. Range pergerakan hari ini akan berada
di 9300-9350. Sebagai catatan, USD/IDR secara rata-rata berada pada range 9300-
9400 dalam waktu sebulan terakhir.

• Neraca pemmbayaran Indonesia di kuartal 4 tahun 2009 menunjukkan kenaikan
14% QoQ menjadi $4bln, setelah pada kuartal sebelumnya berada di $3.5bln.
Kenaikan ini disebabkan permintaan komoditi yang meningkat, yang membuat
surplus budget di tahun 2009 sebesar $12.5bln (dibandingkan deficit sebesar
$41.95bln di tahun 2008).

• Bursa Saham Indonesia melanjutkan momentum positifnya dengan ditutup
menguat 0.9% di level 2581.34 kemarin. Kenaikan harga komoditas seperti minyak
yang kembali bertengger di level $77 memberikan ruang untuk saham-saham
berbasis agriculture dan pertambangan (naik 1.5% dan 1.4%) untuk dibeli. Terlihat
masih ada ruang penguatan bagi bursa saham lokal hari ini, walaupun akan dibatasi
oleh melemahnya rupiah di sesi pagi ini.

• US: Wall street melanjutkan penguatannya, dipimpin oleh saham-saham retail dan
industri, dengan optimisme yang positif dari sisi pendapatan perusahaan –
perusahaan di Amerika, data ekonomi yang menunjukkan tren positif, ditambah
dengan prediksi FOMC yang menaikkan investor confidence. Dow Jones, Nasdaq,
S&P 500 ditutup berturut-turut +0.39%, +0.55%, +0.42%

• Australia: Asisten Gubernur RBA menyatakan bahwa perkembangan ekonomi
domestic cukup positif, dan membuka ruang bagi RBA untuk kembali menaikkan
suku bunga acuannya. Testimoni dari Gubernur Bank Central Australia akan
ditunggu market pada Jum’at nanti.

• Jepang: BOJ kembali mempertahankan suku bunga acuannya di 0.1% pada
meetingnya hari ini, dengan catatan kondisi ekonomi di Jepang memperlihatkan tren
naik, namun perhatian pasar adalah turunnya GDP deflator (ukuran yang dipakai
untuk memonitor trend dari harga) sebesar 3%

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-------------------------------------------------
<1> BANK INDONESIA EXCHANGE RATE
(BELOW ARE YESTERDAY'S RATES, WHICH WERE TO BE ANNOUNCED AT 10:00 A.M)
BUYING : 9,234.00
SELLING : 9,326.00

<2> Currency Kind of Tran. BUYING MIDDLE SELLING REMARKS
US$ - IDR T.T. 8,980.00 9,580.00
ATM Card 9,180.00 -
M.T./D.D. 8,950.00 9,580.00
** Bank Notes 8,780.00 9,780.00
NON-EXCHANGE 9,280.00
------------------------------------------------
YEN - IDR T.T./M.T. 97.61 106.44
Bank Notes 94.47 110.00
NON-EXCHANGE 101.98
------------------------------------------------
US$ - YEN T.TT 90.00 92.00
Bank Notes 88.00 94.00
NON-EXCHANGE 91.00
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SPOT VALUE ON: FEB. 22, 2010 (USD/IDR)
<3> TOKYO MARKET REPORT OF US$ - YEN
Opening -------------------> : 91.07/08 TTM : 91.06
BTM TOKYO'S EXCH.RATE TTB--> : 90.06 TTS : 92.06
Yen Forward
Forward Point: 1 Month 2 Months 3 Months 6 Months 1 Year
-2 0 -3 -1 -5 -3 -12 -10 -42 -40
Cross Rate :
EUR:1.3570/1.3580 CHF:1.0790/1.0800 GBP:1.5660/1.5670 HKD:7.7680/7.7690
SGD:1.4070/1.4080 AUD:0.8960/0.8970 CAD:1.0480/1.0490 NZD:0.7010/0.7020
THB:33.17/33.20 MYR:3.3950/3.4000
<4> EURO INTEREST RATE INDICATION
PERIOD USD EUR JPY
------ --------- --------- ---------
1 M/O 0.17/0.32 0.30/0.45 0.05/0.15
3 M/S 0.25/0.40 0.40/0.60 0.10/0.25
6 M/S 0.45/0.75 0.70/0.90 0.20/0.40

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USD/JPY
Asian shares leapt to three weeks high on Wednesday, powered by financial and
resources shares after investors bought commodities on a weaker dollar, while Hong Kong
shares shrugged off China’s latest move to temper robust lending. Hang Seng rose 1.8pct
after a long Lunar New Year holiday break.
The US currencies lost ground to the Euro and other major currencies while the US gained
versus the Japanese Yen. The Euro held steady after surging 1.3 percent against the
dollar on problems have yet to be solved, and the euro remains highly sensitive to more
negative fiscal news. It was trading at $1.3769, steady, steady on the day and well above
last week’s nine-month low of $1.3532. Against the Yen, the pair was traded higher on
range of 90.10-90.40
Forecast: Market still waiting for the Federal Open Market Committee (FOMC) to be
released later tonight.
Expected range for tomorrow: 90.00 – 91.50


USD/IDR
The rupiah rose for a second day after Greece’s finance minister said his nation won’t need a
bailout from the European Union to finance its budget deficit, thus returning some of the risk
appetite. The pair traded below 9300 after almost a month hovering above that level. The local
bourse also rose 0.88% after gaining 1.6% yesterday. The record shows that foreign funds
bought more Indonesian equities than they sold in the past five trading days. International
investors also increased their holdings of local bonds to 119.01 trillion rupiah from 115.02
trillion rupiah in January.


Closing market on Feb 17, 2010 Jakarta market at 5 pm. on Feb 17, 2010

Nikkei : 10,306.83 (+272.58) USD/JPY : 90.55 /90.65

JGB : 1.325 (+0.005) EUR/USD : 1.3745/1.3755

JSI : 2,581.34 (+22.835) USD/IDR : 9,285

EUR/JPY : 124.50/124.60

Closing market on Feb 16, 2010 BTMU JIBOR 1 mo : 7.25 %

DJI : 10,268.81 (+169.67) BTMU JIBOR 3 mo : 7.50 %

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