Rupiah Gains Slightly Against US Dollar

Jakarta - The Indonesian currency rupiah gained slightly this morning following reaction of the market players to announcement about the country's Gross Domestic Product (GDP). Rupiah traded at the level of 9,675 per dollar in inter-bank transactions from earlier position of 9,680, Trust Securities' analyst Reza Priyambada said here on Wednesday. Rupiah strengthened slightly in response to GDP announcement. Reza said the country's GDP in the last quarter of 2012 rose 6.11 percent from the same period in 2011, but fell 1.45 percent from the third quarter in 2012. Year-on-year, the country's GDP grew 6.23 percent slower than a growth of 6.5 percent in 2011. Reza noted negative sentiment came from Europe with the growing political risks in Spain and Italy . "Poll in Italy showed weakening support for reform and in Spain political corruption scandal disturbed stability," he said. Milenium Danatama Sekuritas' market observer Abidin said foreign capital still entering the domestic stock market is a driver propping up rupiah. "Foreign market players still entering the domestic market encouraged by the strengthening of the BEI index," Abidin said. (Translated by Albert Saragih/check-edited by Eliswan) (*)