Jakarta (ANTARA News) - The Indonesian currency rupiah weakened against the US dollar at the close on Wednesday on fear of impact of contraction in Chinas manufacturing data.

Rupiah traded at the level of 11,636 per US dollar or a loss of 166 points from the earlier level of 11,470.

Contraction in the Chinese manufacturing industry is feared to have impact on the country trade balance, Monex Investindo Futures analystr Zulfirman Basir said.

China has become one of the countrys largest trading partners, he said.

He said the market players also still are worried by political risk ahead of the presidential election in July.

Chief researcher of Trust Securities Reza Priyambada said the rupiah fall against the US dollar is also attributable to plan of listed companies to pay dividend.

"Payments of dividends could lead to a rise in capital outflows increasing demand for dollar," Reza said.

(SYS/H-ASG/H-YH)

Editor: Suryanto
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