The Rupiah currency rate weakened against the US dollar on Monday morning along with the weakening of several Asian currencies.

During interbank transactions in Jakarta on Monday morning, the Rupiah weakened 30 basis points to Rp 9,775 per US dollar from Rp 9,745.

'€œSeveral analysts consider that the US economy still can grow, although half of its economic indicators show that the economy is likely growing at a slower rate. Such expectation supports the US dollar to strengthen again,'€ said a financial market analyst from Himpunan Saudara Bank, Ruly Nova, in Jakarta on Monday.

Nevertheless, he said, the domestic currency rate still could strengthen again along with the positive performance of Indonesia'€™s economic fundamentals with an estimated economic growth of between 6.2 to 6.5 percent.

Moreover, Ruly said, Bank Indonesia (BI) would also keep watching over the fluctuation of the domestic currency rate in the financial markets so that it could remain stable.

Ruly also said that the government'€™s plan to raise the price of subsidized fuel for four-wheeled private vehicles could help reduce the negative balance of trade.

'€œWith a decline of trade deficit, it is hoped that the rupiah currency rate can move toward a positive direction because up until now, the trade deficit has been one of the cause factors that lead to the weakening of the domestic currency rate,'€ he said, adding that oil and gas was one of the factors that caused such a domestic trade deficit.

Meanwhile, an economist from Samuel Sekuritas, Lana Soelistianingsih, projected that the rupiah currency rate had the potential to strengthen ahead of a forthcoming auction of government bonds (SUN).

'€œAny plan for a government bonds auction is usually responded to with a strengthening of the Rupiah,'€ she said. (ebf)

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