"Though declining rupiah tends to be stable with positive sentiment on the domestic market," Rully Arya Wisnubroto, a financial market analyst, said.
Jakarta (ANTARA News) - Rupiah lost more value against the US dollar in inter-bank transaction to close at at the level of 11,884 per dollar on Tuesday afternoon.

Rupiah lost 377 points from the earlier level of 11,507 per dollar.

"Though declining rupiah tends to be stable with positive sentiment on the domestic market," Rully Arya Wisnubroto, a financial market analyst of Bank Mandiri said.

Rully pointed to low inflation in November and surplus in trade balance in October.

The decline on Tuesday came as a correction after a significant gain on Monday, he said.

He said the rupiah movements would be determined later by US labor data which will give signal to the market player in anticipating the Fed monetary policy .

"Currently the market players attention is drawn to the US labor data to be published toward the end of this week. If the labor data are not as expected, the Fed tapering off plan would be postponed," he said.

He predicted rupiah would trade at the range of 11,650-11,950 per dollar on Wednesday.

Chief researcher of Monex Investindo Futures, Ariston Tjendra, said the US dollar had gained on signal of improvement in the US economic condition .

The improvement in the US economic condition may lead to earlier decision by the Fed to cut its financial stimulus , Ariston said .

"US data would determine the direction of the movements of the currencies of developing nations," he said.

Meanwhile technical factors brought down the Jakarta composite share price index .

The index of the Indonesian Stock Exchange closed 33.21 points or 0.77 percent lower at 4,288.76 points on Tuesday afternoon with index of 45 most liquid stocks down 0.79 percent to 714.08 points.

"The fall of the index constituted a healthy correction after a surge on yesterday trading," PT Anugerah Sekurindo Indahs analyst Bertoni Rio said here on Tuesday.

Bertoni said the possibility of the BEI index to climb again is open despite the declining trend of rupiah.

He said, however, that rupiah could be under pressure because of the Fed tapering off issue .

He said pressures in the European and majority Asian markets may lead to heavy share sales by investors.

He predicted the BEI index would hover around 4,260-4,320 points on Wednesday .

On Tuesday trade at the BEI there were 119,174 transactions with 4.28 billion shares valued at Rp3.89 trillion changing hands.

Gainers were outnumbered by decliners by 90 to 164 with 100 stocks unchanged.

Regional markets such as Hang Seng recorded a 0.53 percent fall in index to 23,910.47 points with Nikkei-225 index up 0.60 percent to 15,749.66 points and that of Straits Times gaining 0.05 percent to 3,189.41. (*)

Editor: Heru Purwanto
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