The euro was at the level of U.S. $ 1.4488 from U.S. $ 1.4443 before that this is a direct result of short-term speculators who immediately let go of the dollar as concern the impact of bond market activity in Greece.

The weakened dollar is also directly make the price of gold shot up, on this day has reached its highest level in history that is 1478.32 U.S. dollars per troy ounce. The investors will not continue to save the dollar while the U.S. economy does not get better and The Federal Reserve continues to hold its benchmark interest rate, investors tend to switch to the most profitable investment and gold is the most preferred investment investors lately. Gold prices can only continue to rise and may be able to penetrate 1600 U.S. dollars per troy ounce this year if inflation remains high and the low global interest rates. (Winnie)

In contrast with the increasingly weakening dollar due to the delay in the Fed (The Federal Reserve) raising its benchmark interest rate after the asset purchase program worth U.S. $ 600 billion ends next June. while strengthening currency will depend on the actions of the Central Bank against its benchmark interest rate so that the funds will flow into assets with a yield of centipede while the U.S. will keep its interest rate hikes as long as it is this which makes dollar worse off if the move also will move few.

The fall in the dollar has sparked rising gold prices as investors began to switch from investing dollars to invest in gold is considered the most secure post-uncertain U.S. economy. Until the end of this year gold price predicted to reach 1550 dollars per troy ounce. Besides the onslaught of China and India buy up gold contributing rising gold prices. (Winnie)

President of the United States, Barac Obama is calling on Gaddafi to resign so that the conflict would soon subside and once Libya argued protect civilians so as not to become victims, but still, for most countries including the Arab League coalition forces raid reason is very far from reality as the result of the invasion forces coalition that causes civilian casualties.

Negative issues and the pros cons of Libyan attacks by coalition forces is what makes the price of crude oil raise at once to correct the dollar coupled with Bahrain conflict that has not subsided at the same time the emergence of new conflicts in Yemen in which the opposition wants ouster of President Ali Abdullah Saleh, although Saleh president had promised to resign in early January 2012.

Correction in the dollar also makes the rupiah is still in a stable position including currency other Asian countries. As a result there will not be any action from the government to raise the exchange rate of rupiah. Although the dollar corrected but not necessarily boosted gold prices, gold prices in the spot market fell about 0.2 percent a thin but steady move in the futures market. But investors still see it as a safe-haven of the most popular. (Winnie)

Although Saudi Arabia has agreed to maintain the stability of oil supplies, but many still worry, especially if the same conflict  will spread to Saudi Arabia, although some economists say is unlikely but still have to watch out because it was a demonstration in Bahrain, while Bahrain has close ties with Saudi Arabia.

Besides, some European refineries are also concerned about whether Saudi Arabia could send oil like those of Libya. Please note that Libya’s oil supply 2% of the world in the form of low-sulfur crude oil (light), making it easier for the refinery.

Concern is what makes the investors trying to secure the assets and see that gold is the safest investments result in gold prices continue to soar in line with Libya that do not conflict reda.Menurut Peter Fertig, boss Commodity Quantitative Research “for the situation in the Middle East and North Africa still volatile, oil prices will continue to rise, it is boosting gold prices. ”

Gold for April delivery contract on the New York market  now in the level of USD 1444.70 per troy ounce (1 troy ounce is equivalent to 31.1 grams). It goes through a record high price of USD 1441 per troy ounce which occurred on 2 March 2011.

Gold prices are increasing is also influenced by the weakening dollar due to the instability in the Middle East was causing European stock markets slumped. The weakened dollar is causing the rupiah slowly moves up and the predicted in the range of Rp8.870-Rp8.800. This has led to positive precedents so that the rate of inflation can be suppressed for a while.

According to the Governor of the Bank Indonesia Darmin Nasution, “the economic imbalances that occur in developed countries cause capital inflow is still flowing to developing countries including Indonesia, so that the central bank would not peg the rupiah at a certain range, because he thinks it’s fitting the range of dollars for exporters and importers“. (winnie)

Rupiah movement from day to day which showed the gain, reflecting the outlook for Indonesia’s economic growth is positive.

In addition, investors seem to have realized that the U.S. central bank is printing money to restore the economy. Most likely the Central Bank is printing money to finance bigger government spending.

Market participants will reduce the ownership of the dollar and U.S. bonds, to print so much money that will likely lead to the downfall of the U.S. dollar against world currencies.

That way, market participants will return to emerging markets in Asia including Indonesia, which has the fundamental growth of the economy with good prospects.

Amount transacted on Friday afternoon at around 8990 per U.S. dollar, rose 30 points compared to the previous day’s position in 9020 per U.S. dollar.

With the rise in BI Rate encourages foreigners to buy dollars because the gain has to offer more promising and hopefully the government cThe government is believed to have prepared measures to deal with inflation in the following months so that the level of investment risk becomes relatively better.

In addition, the rupiah was also triggered by the weakening U.S. dollar against global currencies, over the slow pace of economic recovery in the U.S..an also control the movement of inflation so as not to move wildly.

Expectations of slow U.S. economic growth rate gives a positive sentiment on the rupiah, plus the influence that comes from the crisis in Egypt,

The crisis that occurred in Egypt at this time to make investors re-make the country `` emerging markets as a place to invest, including Indonesia.

Indonesia‘s economy, is still considered good growth in Asia, and became one of the countries that have positive economic growth this year.

In addition to global factors, the strengthening of the composite share price index (CSPI) also contribute to local currency movements.

Market participants tend to buy dollars and U.S. dollar took off to play in the stock market, which encourage JCI strengthened.

The decision of Bank Indonesia (BI), which sets interest rates higher, the bank (BI rate) to December 2010 amounted to 6.5 per cent were unable to make the rupiah strengthened.

In fact, the Central Statistics Agency (BPS) recorded for the December inflation reached 0.92 percent. The number is almost close to a psychological one percent and higher than original expectations. Thus, inflation throughout 2010, namely the period from January to December stood at 6.96 percent.

U.S. economic recovery in five months in 2010 by the Fed are considered not yet reached the limit (threshold) is desired, especially seen from the inflation indicators are still below the target of two percent.

Inflation in 2010 is estimated to still one per cent yoy, down from 2.4 percent in 2009. Even some representatives see no risk of deflation in the coming months. At the same time the unemployment rate is still high at 9.8 percent although expected to be down slightly to 9.7 percent at the end of December 2010.

The decision by the Fed to continue this positive policy to maintain liquidity in global financial markets at least until the second quarter of 2011.

Rupiah hopes of WTI crude oil price hike that seems to be a positive factor of the Asian markets today.

On trading yesterday following the weakening rupiah weakened Composite Stock Price Index (CSPI), which also declined. In addition, the existence of doubt whether an agreement to save the Irish from debt can avoid the debt crisis of Europe, pushing the euro to its lowest for two months.

The increase in crude oil prices yesterday’s positive sentiment is usually triggered Asian markets, including the rupiah.

Amount is expected to move to strengthen to around Rp8.930-Rp8.940 per USD.

Korean crisis was actually made strengthening the Korean indicators, both won and the Kospi rose in trading yesterday. Instead weakening rupiah and it occurs in JCI.

Rupiah and the Jakarta Composite Index has recorded a gain in U.S. dollar high so prone to profit taking in case of turbulence.

To put a halt to the strengthening of the rupiah, Bank Indonesia (BI) claims diligently for launching intervention is not too strong rupiah weakened alias that is triggered by the swift flow of foreign funds (capital inflow).

The result, indeed the strengthening of the rupiah exchange rate is not skyrocketing compared to some countries in Asia which is also the place berlabuhnya foreign funds.

BI can understand that the strengthening of the rupiah can indeed negatively impact business activities engaged in export. Currently, the Central Bank successfully maintain the rupiah exchange rate volatility on the level of Rp8.900 per USD.

Level is considered the most ideal and secure in holding onslaught of foreign funds so swift. You can imagine how the strengthening of the rupiah if not diligent Central Bank to intervene in an amount not exactly small.

Therefore, the central bank rejected all allegations that judge did not act in keeping the volatility of the rupiah over the years. Throughout January to late September this year, the strengthening of the rupiah against the U.S. dollar by 5.6 percent.

Parties to the strengthening of the Central Bank rate is still within reasonable limits when compared to some countries like Thailand baht at 9.72 percent and approximately 11.01 Malaysian ringgit in the same period.

The strengthening of the rupiah that kept going was difficult dammed in the middle of the swift flow of foreign funds that entered. For Indonesia, the capital inflow that continues to invade it in one hand indicates that economic development is so exciting that attract foreign investors.

However, on the other hand, capital inflow is a major problem. Besides threatening the stabilization of the rupiah, also can deteriorate the wheel of national economic growth when the reverse direction suddenly returned to the country of the investors.

Because no one can predict how long these foreign funds will be entrenched in Indonesia. A number of countries that also targeted foreign funds have been wearing a special tax.

This is one instrument to control for foreign funds do not become a threat both to the stability of exchange rates and economic activity. In Indonesia, for the taxation of foreign funds are still in the form of discourse.

Seeing these conditions, it seems less fair when it is fully let loose handling of capital inflow to the Central Bank although it has become entirely the responsibility of the BI.

Looks like the other policies needed to integrate with each other during this monetary policy. Among policy instruments to increase the absorption of foreign funds by the private sector and State-Owned Enterprises (SOEs) in the stock market.

BI Governor proposes Nasution said foreign funds to be absorbed through the rights issue, an initial public offering (IPO) or a bond. Unfortunately, hope Darmin was not fully in line with the step of SOEs.

Just look at the number of SOEs which plans an IPO and rights issue this year is delayed for reasons that are not so significant. Original plan, until the end of this year there are two companies will remove the red plate stock to the public, namely Garuda Indonesia and PT Krakatau Steel. Then two state-owned bank that plans to hold a rights issue, namely Bank BNI and Bank Mandiri.

By reason of consolidation of subsidiaries and financial report was not finished, Garuda Indonesia was delayed going public next year, while Bank Mandiri had relented and allowed the Bank BNI moves first. Krakatau Steel yet another issue.

Although still to be going public this year, the share price offered by the national steel company was valued at Rp850 per share is very cheap. In fact, before the set, the price of shares to be thrown to the public is already published, with a range between Rp800 to Rp1.050 per share.

Some circles who understand the ins and outs of the capital market rate, at least a stake in Krakatau Steel is offered at the level of 1,000 per share. Because, in addition to the preferred stock investors, also have to make use of foreign funds that are thirsty to find a place of investment. We hope, it’s time BI Governor wishes it could be responded to by both state officials and private.