Some market players have not responded positively to the US success in reaching agreement to deal with its fiscal cliff.
The rupiah traded at 9,645 to the US dollar on Thursday morning weakening from the level of 9,628 per dollar earlier.
"The market players still saw snags in the agreement to deal with the fiscal cliff," Trust Securities` analyst Reza Priyambada said here on Thursday.
Reza said US policy makers already agreed on tax hike but only on people with annual income of more than US$400,000.
"There are still fears among the market players with the US Parliament having not agreed on the debt ceiling that could have effect on the US government plan to issue bonds," he said.
He said the country`s low 0.54 percent inflation in December had only short term positive sentiment for the domestic market.
In addition, the deficit still recorded in Indonesian trade balance held the rupiah from rising despite positive sentiments from China and South Korea, which reported improvement in manufacturing data.
"Indonesian trade balance is expected to be in the red still in November and December giving negati8ve sentiments to rupiah," Reza said.(*)
Editor: Heru Purwanto
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