Rupiah tends to weaken on Tuesday

Jakarta (ANTARA News) - The Indonesian currency rupiah was relatively stable on Tuesday morning but tended to weaken against the US dollar as the market players are awaiting announcement of the government policy in oil fuel subsidy.

"The rupiah is relatively stable. The market players are awaiting an announcement by the government about its oil fuel subsidy," Trust Securities` analyst Reza Priyambada here on Tuesday.

President Susilo Bambang Yudhoyono is to announce the policy at National Development Planning Meeting later on Tuesday.

Rupiah traded at 9,720 to the US dollar in inter-bank transaction weakening from 9,717 on Monday`s close.

The government is expected to reduce oil fuel subsidy by raising the price of premium gasoline for private cars .

Reza said the market players studied the impact of a statement by the finance minister that the country`s inflation could reach 5.5 percent this year, higher than a previously set target of 4.9 percent.

The market players also noted with interest a report issued by the International Monetary Fund(IMF) that Asia Pacific would grow 5.7 percent in 2013 or lower than 5.9 percent as previously predicted.

"The decline was caused by some countries in Asia Pacific still experiencing an economic slowdown," he said.

Samuel Sekuritas` analyst Lana Soelistianingsih said the IMF predicted that massive foreign funds would flow into Asia resulting in a surge in property and share prices .

The surge in property prices could cause economic overheating that needs to be seriously addressed. (*)

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