The currency traded at 9,726 per dollar in inter-bank transactions losing slightly from 9,721 earlier.
The market was worried that the same scheme and conditions slapped on Cyprus for its bailout would be used also on other ailing European economies, Trust Securities` analyst Reza Priyambada said.
Reza said the Cypriot government has agreed on imposition of tax of 25 percent on deposits larger than 100,000 euros.
Meanwhile, money market analyst from Bank Himpunan Saudara, Rully Nova, said state bond auction which was up to target helped prop up rupiah from falling deeper.
"However, the possibility of rupiah sinking lower is still there with high inflation expectation," Rully said.
He said external sentiment still tended to be positive on currencies of developing countries including rupiah because of the acceptance of the bailout fund from the European Central Bank.
"The bailout fund is given to maintain financial stability in Europe and prevent the crisis from spreading to other countries in the region," he said.