The IDR rupiah gained slightly after Mervyn King, governor of the Bank of England, stated that the central bank will not try to decrease the pound sterling's value. This statement was in contrast with previous statements that called for supporting monetary easing as well as a lower pound sterling. The limited gain of the rupiah was brought on by an appreciating US dollar due to positive economic data. Besides the previously published increased US retail sales, US jobless claims and the US current balance were well-received on Friday, and seemingly indicate continued recovery of the American economy. On the other hand, concerns emerged because of the possible accelerated withdrawal of monetary stimulus by the Federal Reserve.

Asian stock markets were mostly up on Friday, influenced by Thursday's positive American markets. Positive market sentiments also came from Japan, where Japan's House of Councillors approved the president's nomination of H. Kuroda as governor of the Bank of Japan. Hong Kong's Hang Seng Index and the Korea Stock Exchange (Kospi), however, fell after receiving news of banks raising mortgage rates and the decline in the stock value of Samsung Electronics Co.

European stock indices turned negative on Friday amid the two-day Euro Summit. Market participants saw that the attitude of European leaders began to soften towards policies of national budgets in response to the recession in the Euro area. European Union leaders support an assessment of the structural budget, while France, Spain, and Portugal need extra time to reduce their deficits. On the other hand, positive sentiments came from an increased UK Leading Index, a decline in annual Euro-zone inflation, and the result of Spanish bond auctions (tenor 15 years) that totaled €803 million, while its yield fell to 5.453 percent from 5.893 percent.

On Friday, American stock markets also turned negative after the results of Consumer Sentiment and the NY Empire State Manufacturing Index. CPI or inflation, however, was better than expected at 2.0 percent. Although Industrial Production also showed a rise, it was not enough to keep most investors from selling assets.

Bahas