External pressure on rupiah has softened with the decision of The Fed to postpone reduction of its monetary stimulus, but rupiah is not yet free from domestic pressure, analysts said.
Jakarta (ANTARA News) - Indonesia`s rupiah fell losing 200 points against the US dollar in Friday closing trade.

Rupiah closed at 11,055 per dollar in inter-bank transaction weakening from the level of 10,855 on Thursday.

External pressure on rupiah has softened with the decision of The Fed to postpone reduction of its monetary stimulus, but rupiah is not yet free from domestic pressure, analysts said.

Rupiah is expected to regain strength only when inflation could be effectively curbed, and progress is made in reducing current account deficit, financial market observer Lukman Leong from PT Platon Niaga Berjangka, said .

"Bank Indonesia should be careful with hot money reentering the domestic market," Lukman said.

Meanwhile, financial market analyst from Bank Mandiri Ruly Arya Wisnusubroto said the market players were in euphoria brought about by the decision of the US central bank to continue with its quantitative easing strengthening rupiah.

"But now negative domestic sentiment came on top of them again," he said.(*)

Editor: Heru Purwanto
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