The currency traded at 9,699 per US dollar weakening from the level of 9,688 in inter-bank transaction.
Negative sentiment came following Italian bond auction being falling short of target on fears of political instability in that country, Trust Securities` analyst Reza Priyambada said.
As a result the currencies of developing nations including Indonesia lost ground against the US dollar, Reza said.
He said the rupiah fall was also attributable to a 1.1 percent increase in US retail sales exceeding earlier estimate of 0.2 percent.
"Improved US economy will encourage market players to hold more dollar," he said.
The market players are also still worried by the deficit in trade balance , shrinking foreign exchange reserves and and higher inflation in February on-year, he said.
He said improvement in Australian economic data with growing number of jobs is not enough to prop up rupiah facing the US dollar. (*)
Editor: Heru Purwanto
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