"Negative external sentiment could hold rupiah from gaining further against the US dollar," Trust Securities` analyst Reza Priyambada said here on Tuesday.
The currency traded at the level of 9,709 in inter-bank transactions gaining from the level of 9,714 earlier.
The central bank gave a positive sentiment with its last week`s decision to maintain its benchmark interest rate at 5.75 percent amid rising inflation, Reza Priyambada said.
The signal indicated the domestic economy is stable amid data showing slowdown in China and the protracted crisis in Cyprus.
With the negative global sentiment , investors would tend to seek a safe haven like the US dollar, he added.
Samuel Sekuritas` economist, Lana Soelistianingsih , the bomb explosion in the United States caused concern among investors.
"The terror bomb was not as destructive as the WTC tragedy, but it was enough to prompt investor into profit taking by holding dollar," she said.(*)
Editor: Heru Purwanto
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