The Indonesian currency traded at Rp9,675 in the Jakarta interbank spot market late Friday against Rp9,720 per dollar the day before.
Normally, the rupiah strengthens ahead of year-end, fueled by corporate demand to repay rupiah-denominated debts, Abidin of Milenium Danatama Sekuritas said here on Friday.
The movement of the rupiah which previously came under pressure prompted market players to dispose of their dollars to accumulate profit, he said.
"BI (the central bank) which guards the movement of rupiah is one of the factors," he said.
Analyst Reza Priyambada of Trust Securities said the movement of rupiah will still show a negative trend following BI`s projection that its benchmark interest rate, locally known as BI rate, will stay at a low level of 5.75 percent in 2013, with the inflation expected to clock in at 5 percent.
"This is different from the Federal Reserve interest rate which is expected to increase. As a result, the dollar will strengthen, causing the rupiah to depreciate," he said.(*)
Editor: Heru Purwanto
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