"The inflation, which was held below estimate had kept the currency in positive area," analyst Reza Priyambada saidJakarta (ANTARA News) - The Indonesian currency rupiah extended gains against the US dollar this morning boosted by the country`s inflation curbed below estimate.
Rupiah traded at 9,595 to the dollar gaining 5 points from 9,600 in inter-bank transactions on Tuesday.
"The inflation, which was held below estimate had kept the currency in positive area," Trust Securities` analyst Reza Priyambada said here on Tuesday.
The country`s inflation was 0.07 percent on month in November lower than previous estimate of 0.27-0.29 percent .
On-year the inflation in November was 4.32 percent , also lower than previous target of 4.61 percent.
"The rupiah`s further appreciation was curbed by the country`s shrinking exports in October by 1.45 percent to US$15.67 billion on-month," Reza said.
Cumulatively , the country`s exports in the first 10 months of the year reached US$158.66 billion or down 6.22 percent on-year.
The country`s imports also declined causing concern that domestic consumption would fall with weakening purchasing power of the people.
The consumption sector has been the driving motor for the country`s economic growth .
Meanwhile, the release of Chinese manufacturing index help shore up rupiah, Reza said.
Samuel Sekuritas` analyst Lana Soelistianingsih said talks on US "fiscal cliff" had failed to find a solution giving a negative sentiment to the exchange rate of risky currencies including rupiah.
"The deadlock could trigger negative impact on the money market," she said.(*)
Editor: Heru Purwanto
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