Rupiah traded at Rp9,810 to the US dollar, weakening from its initial value of Rp9,750.
According to Reza Priyambada, an analyst at Trust Securities, the Indonesian currency became weak because of an increase in fuel consumption, forcing the government to import fuel oil.
"An increase in the import volume of fuel oil has increased the demand for the US dollar. Hence, the exchange rate is higher," he said.
He said Bank Indonesia`s (BI) intervention will further weaken the Indonesian currency.
He added that the steps taken by the Fed to stimulate growth in the US and to prevent inflation had also led to the weakening of the Indonesian currency.
The Head of Research at Monex Investindo, Ariston Tjendra, said economic growth in several European countries and China has not led to the strengthening of the Indonesian currency.
"BI is expected to take steps to minimise the fluctuations in the domestic exchange rate," he said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
