Rupiah Loses More Value Against US Dollar

Jakarta - The Indonesian currency rupiah lost a 20 points against the US dollar in inter-bank transactions on Friday morning. The currency traded at the level of 9,700 to the US dollar weakening from 9,680 while the market player were awaiting for announcement about January's inflation. "Rupiah value tends to fall slightly against the US dollar probably because of the wait and see action of the market players," Trust Securities' analyst Reza Priyambada said here on Friday. Reza said the rise in the electricity tariff and flooding hitting many areas in the country caused worries about delay in goods distribution could trigger a surge in inflation. The country's inflation has always increased in January but the rise in electricity tariff and big floods causing heavy damage in various areas were feared to result in a higher increase in inflation, he said. Meanwhile, the data about the US GDP growth rate that fell to less than 1 percent pushed up demand for US dollar as a safe haven, he said. Samuel Sekuritas' markate analyst Lana Soelistianingsih said the market players are especially awaiting announcement by the Central Burau of Statistics about the country's trade balance. "It is predicted that inflation in January was 0.87 percent month on month or 4.4 percent year on year, and the trade balance still has a deficit of US$287.3 million in December," Lana said. She said rupiah could regain some of its losses to close at the level of 9,650-9,680 per dollar today if the central bank resumed its protective policy. (*) (Translated and edited by AS Saragih and Otniel)