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Rupiah weakens to 11,695 per dollar Tuesday morning
The rupiah interbank trade rate weakened marginally by only two basis points to Rp 11,695 per US dollar in Jakarta on Tuesday morning
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The rupiah interbank trade rate weakened marginally by only two basis points to Rp 11,695 per US dollar in Jakarta on Tuesday morning.
"Sentiments regarding market expectations on immediate [US] Federal reserve rate interest hike has limited room for the rupiah to grow," Bank Himpuan Saudara analyst Rully Nova said in Jakarta on Tuesday as quoted by Antara news agency.
He said that better data in the US economy such as its inflation rate, which grew in line with the government's target, and its unemployment rate, which decreased, had attracted investors to keep their assets in the greenback.
In the domestic market, he said uncertainty on when the price of subsidized fuel would be increased had placed pressure on the rupiah.
"Market players are expecting the fuel price increase because it will be healthy for the country's current account, hence, helping the rupiah to strengthen," he said, adding that fiscal room in the country was tight at present.
He, however, said the fact that the domestic currency was traded between Rp 11,600 per dollar to Rp 11,700 per dollar showed that the rupiah remained stable. (nfo)
