Inflation data which is not as high as earlier feared is a factor strengthening rupiah against dollar."Jakarta (ANTARA News) - The Indonesian currency rupiah gains against the US dollar in interbank transaction closing at the level of 12,976 from earlier level of 13,073 per dollar.
"Inflation data which is not as high as earlier feared is a factor strengthening rupiah against dollar," financial market analyst of Bank Mandiri, Rully Arya Wisnubroto, said here.
The countrys inflation was recorded at only 0.17 percent in March though rising from a deflation in January and February, Rully said.
Inflation in March was expected by many to rise higher following the rise in rice and fuel oil (BBM) prices.
Rully Arya Wisnubroto,however, said the rupiah gain might not last long depending on the US labor data to be released by the end of this week.
The US central bank has used the labor data to determine its monetary policy on fund rates.
The Fed is expected to raise its fund rate in the middle of this year, but later its signaled delay until the end of this year.
Meanwhile, chief researcher of Monex Investindo Futures Ariston Tjendra said Chinese manufacturing data in March curbed demand for US dollar as a safe haven.
Ariston said currently the market players tend to wait and see what is to come after the release of the US labor data later this week.
(Uu.H-ASG/H-YH)
Editor: Priyambodo RH
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