Rupiah gains against US dollar Tuesday`s trading

Rupiah gains against US dollar Tuesday`s trading

Rupiah. (ANTARA FOTO/Widodo S. Jusuf)

Jakarta (ANTARA News) - The Indonesian currency rupiah regained lost value in inter bank transactions on Tuesday trading at the level of 13,190 per dollar from earlier level of 13,226.

"Yesterdays weakening was a short term reaction. Bank Indonesia is still on the market to keep the stability of the national currency within its fundamental value," financial market observer from Bank Himpuan Saudara, Rully Nova, said .

Rully said the chance for the countrys economy to grow is still open to follow the success in the government economic programs such as tax amnesty.

The tax amnesty sentiment would drive the market players to accumulate rupiah denominated assets, he said.

"Although inflows of repatriated funds are still minimum, but the hope is high that the policy would improve the state fiscal condition," he said.

Chief researcher of Monex Investindo Futures Ariston Tjendra said amid caution adopted by financial market players ahead of the annual symposium of the U.S. central bank (The Fed) by the end of this week, the U.S. dollar tends to weaken against the majority of the global currencies including rupiah.

"The U.S. dollar looks to have lost the momentum for appreciation ahead of the annual meeting. The symposium has always been used by the Fed President to give signals for the direction of her monetary policy," Ariston said.

Amid the condition the market players would tend to be more cautious especially as the U.S. economic condition has not fully recovered from the slump, he said.