"The dollar was bullish on expectation that the Fed would cut its bond buying program putting pressures on the currencies iof developing countries including rupiah," analyst Ariston Tjendra said.
Jakarta (ANTARA News) - The countrys currency rupiah lost more value against the US dollar closing at the level of 11,779 per dollar on Tuesday.

The currency lost 257 points in inter-bank transaction from the level of 11,522 per dollar on Monday afternoon.

"The dollar was bullish on expectation that the Fed would cut its bond buying program putting pressures on the currencies iof developing countries including rupiah," Monex Investindo Futures analyst Ariston Tjendra said.

In addition many companies would need dollar toward the end of the year giving greater strength to the US currency, Ariston said.

The trend showed that the US dollar was gaining moving closer to the psychological level of Rp12,000 per dollar, he said.

He said he hoped that Indonesian economic data to be published early December would be positive to soften the pressure on rupiah.

Financial market analyst Rully Arya Wisnubroto from Bank Mandiri said there was limited sentiment to boost rupiah at present but hopefully improvement was recorded for the countrys current account data to keep the rupiah from diving deeper.

"The market players are still concerned with the current account deficit," he said.

Meanwhile, the Jakarta composite share price index closed 2.35 percent lower on Tuesday on limited positive sentiment in the market.

The index of the Indonesian Stock Exchange (BEI) fell 99.54 points to 4,235.26 points with index of 45 most liquid stocks down 3.34 percent to 700.21 points.

Amid the prevailing condition with expectation of the Fed cutting its monetary stimulus, the market players tended to sell shares piling up pressure on the BEI index, PT Anugerah Sekurindo Indahs analyst Bertoni Rio said.

The impact of the rupiah fall against the US dollar was bad on the stock market, Bertoni said.

Most foreign investors also chose to sell rather than buy shares on Tuesday, resulting in foreign net sales of Rp54.541 billion, he noted.

He predicted the BEI index could sank to as low as 4,200 points before buoying .

Trading at the BEI on Tuesday recorded 147,562 transactions involving 7.32 billion shares worth Rp8.69 trillion changing hands with decliners fast outnumbering gainers by 223 to 60.

Regional markets such as Hang Seng fell 0.01 percent in index to 23,681.28 points withNikkei-225 index down 0.67 percent to 15,515.24 points and that of Straits Times declining 0.27 percent to 3,172.21 points.(*)

Editor: Heru Purwanto
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