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UPDATE 1-Indonesia's rupiah to strengthen further -c.bank

Fri Mar 20, 2009 12:45pm IST
 
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JAKARTA, March 20 (Reuters) - Indonesia's rupiah currency IDR= is expected to strengthen further against the dollar, central bank governor Boediono said on Friday after a slight appreciation in the currency in recent days.

The rupiah has lost about 8 percent against the U.S. currency this year, making it the second-worse performing Asian currency after the South Korean won KRW=.

"The dollar is depreciating against other currencies as its supplies have been quite adequate," Boediono told reporters.

The central bank government said that in the intermediate terms the trend for the dollar was to weaken against other currencies.

Market concerns about the ability of Indonesian corporates to meet their external liabilities have been blamed for contributing to the rupiah's fall versus the dollar this year.

Deputy central bank governor Hartadi Sarwono told a seminar on Thursday that total maturing corporate foreign debt this year was expected to be $22.6 billion, consisting of short-term corporate debt denominated in foreign currencies amounting to $17.4 billion and $5.2 billion in trade financing.

But he denied that the maturing foreign debt would hit the rupiah due to bigger fund inflows.

(Reporting by Adriana Nina Kusuma; Writing by Dicky Kristanto; Editing by Ed Davies)

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