"The currency tended to strengthen amid US economic data being not up to expectation," analyst Reza Priyambada said.Jakarta (ANTARA News) - The Indonesian currency rupiah was stable and tended to strengthen against the US dollar in the opening trade on Monday.
The currency traded at the level of 9,787 per dollar in inter-bank transaction .
"The currency tended to strengthen amid US economic data being not up to expectation," Trust Securities` chief researcher Reza Priyambada said here on Monday.
Unemployment data in the United States was negative prompting the market players to sell their dollar, Reza said.
In addition the regional trend marked with gain by Asian currencies might help prop up rupiah, he said.
However, uncertainties over plan to raise the prices of subsidized oil fuels , trade deficit of US$1.61 billion in April and sales action by foreign investors still continue to heap up pressure on rupiah, he added.
Samuel Sekuritas` economist Lana Soelistianingsih said rupiah is still vulnerable but Bank Indonesia (BI) still is in the market to protect the currency.
The Indonesian central bank has protected the local currency over the past several month resulting in a decline in the country`s foreign exchange reserves to US$105.2 billion by the end of May from US$107.2 billion a month earlier.
Lana said liquidity of foreign exchanges in the money market is quite tight.(*)
Editor: Heru Purwanto
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