Rupiah Closes Lower to Rp11,335 on Friday Evening

Jakarta (Antara) - The Indonesian rupiah currency closed lower at Rp11,335 against the dollar on Friday evening following the publication of positive US economic data. The rupiah lost 62 points at the Jakarta interbank market on Friday evening to Rp11,335 from Wednesday's close of Rp11,273 per dollar. The positive US unemployment rate and manufacturing index pushed the dollar to strengthen against other major global currencies, said Ruly Nova, money market observer of Bank Himpunan Saudara. "Market players' optimism about the US economy is quite positive, so the market predicts the US financial stimulus can be reduced earlier than projected," he said. Although Indonesia's monthly inflation rate eased to 0.09 percent in October, it has not spontaneously pushed the rupiah to move within a positive area, he said. "Indonesia's trade balance, which recorded a deficit of US$657.2 million, is one of the factors putting the rupiah under pressure," he said. He added that the Indonesian economy, which had yet to perform well, had caused investors to hold dollars to hedge their assets. According to Bank Indonesia's mid rate on Friday, the rupiah weakened to Rp11,354 per dollar from Rp11,234 to the dollar on Wednesday. (*)