Jakarta (ANTARA News) - The Indonesian currency rupiah weakened against the US dollar in Wednesday`s close on market expectation that the United States will cut financial stimulus.

Rupiah lost five points to close at 10,290 per dollar in inter-bank transaction from 10,285 earlier.

Monex Investindo Futures` chief researcher Ariston Tjendra said the US dollar gained over the majority of currencies in the world on increase in US retail sales strengthening expectation that The Fed would cut its financial stimulus.

"The pruning of the financial stimulus is only a matter of time," Ariston said.

PT Nusantara Capital Securities` analyst I Made Adi Saputra said currently rupiah tended to inch down against the US dollar as a result of deficit in the country`s trade balance.

Saputra said Bank Indonesia should not be too active in market intervention.

"Let the market mechanism determine the trend. The time will come when rupiah recovers and and regains its losses," he said.

It is more important for the central bank to maintain foreign exchange reserves, he added.(*)

Editor: Heru Purwanto
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