Foreign capital continued to flow into Indonesia on positive market expectation of the country`s economy preventing the currency from sinking deeper, Samuel Sekuritas` economist Lana Soelistianingsih said here on Friday.
Rupiah traded at the level of 9,712 to the US dollar in inter-bank transaction weakening slightly from earlier position at 9,708 per dollar AS.
Foreign capital entering the domestic share market already reached US$1.8 billion, a factor keeping rupiah stable, she said.
Lana said the International Monetary Fund (IMF) slashing its projection for the global economic growth to 3.2 percent from 3.5 percent earlier hardly had effect on the expectation of the domestic economic growth
"IMF`s projection of the country`s economic growth remains high at 6 to 6.3 percent in 2013 on strong domestic demand," she said.
Trust Securities` analyst Reza Priyambada said rupiah fell only slightly in reaction to a statement by a European Central Bank`s senior official who supported a plan to cut interest rate if the regional economic condition turned worse.
"The ECB`s plans to lower the euro exchange value to boost exports from the region, also drew negative domestic reaction," Reza said.
He predicted rupiah could rise any time with intervention by Bank Indonesia (BI).
(H-ASG/F001)
Editor: Jafar M Sidik
Copyright © ANTARA 2013
