After four days of steep falls in the value of the Indonesian rupiah there was some respite as the markets opened. The government insists that the markets have been over-reacting but financial analysts say investor sentiment towards Indonesia is still overwhelmingly negative.

Shops across Jakarta have promised to replenish their stocks after a rush of panic buying because of rumours of price increases. Some shops had to close down because they ran out of supplies.

Military leaders say the capital has remained calm but they've warned they will be ready to deal harshly with anyone causing trouble. Investors are now waiting to see what comes out of talks between the government and high level officials from the International Monetary Fund in Jakarta next week.

The fund is believed to be dissatisfied with the progress of the reforms agreed to by Indonesia in return for an IMF rescue package last October. The lack of any coherent response from the government to the economic crisis is cited as one of the main factors driving down investor confidence.

With hundreds of companies going out of business and laying off workers, the Minister for Manpower is reported to have announced that 70,000 foreign employees will be sent home in an attempt to preserve jobs for Indonesians. President Suharto's eldest daughter, Tutut, is also offering to help by leading a love-the-rupiah campaign and promising to exchange all her dollars for local currency.