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Rupiah weakens to 11,431 per dollar
The rupiah weakened by four points to Rp 11,431 per US dollar from Rp 11,427 on Wednesday morning
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The rupiah weakened by four points to Rp 11,431 per US dollar from Rp 11,427 on Wednesday morning.
'The political situation which remains uncertain is still being noted by domestic investors so the currency has tended to fluctuate and weaken,' Bank Himpunan Saudara market analyst Rully Nova said in Jakarta on Wednesday as quoted by Antara news agency.
The analyst said currency market players were still waiting for certainty on the next Indonesian president, which would later determine their steps in making investments.
'In this phase, the rupiah will tend to move within a limited range,' Rully said.
The analyst added that the currency still had a potential to strengthen in line with Indonesia's economic fundamentals, which remained strong.
'The inflation rate is under control and Indonesia's trade balance has experienced a surplus trend although accumulatively it is still recording a deficit,' said Rully.
Trust Securities head of research Reza Priyambada said ongoing foreign inflows into the domestic financial market would allow the rupiah to turn around into the positive.
'Foreign inflows entering the market will allow the rupiah to strengthen again against the US dollar,' said Reza. (ebf)
