Rupiah Loses Five Points Against US Dollar

Jakarta - Rupiah weakened losing five points against the US dollar on Tuesday on European economy continuing being in the doldrums. "The European Commission had predicted the Euro zone countries were yet to undergo recession through 2013 and growth target may have to be revised down," Trust Securities' analyst Reza Priyambada said here Tuesday. The Indonesian currency traded at 9,710 per dollar weakening from the level of 9,705 in inter-bank transactions. The condition puts the currencies of developing countries including rupiah under pressure, Reza said. He said negative sentiment also came from Britain after its foreign debt rating was cut from AAA to AA1 by an international rating agency Moody's. Positive sentiments such as improved economic data of Germany helped keep the rupiah from diving deeper, he said. Market observer from Bank Himpunan Saudara, Rully Nova said intervention by Bank Indonesia help maintain rupiah stability. "Rupiah has been relatively stable with slight fluctuations and it is expected to gain part of its lost value this week," he said. (*)