The Fed sentiment would continue shadow rupiah as long as there is no certainty of the Fed fund rate."
Jakarta (ANTARA News) - Rupiah regained some of its lost value against the US dollar closing at the level of 13.310 per dollar on Tuesday gaining from earlier level of 13,321.

"Rupiah manages to stay at the positive area with the impact of the negative sentiment brought about by Greek default on debt repayment began to recede," financial market observer from Bank Himpunan Saudara Rully Nova said here.

In addition expectation that the countrys economic would improve in the second quarter of this year to be released in the middle of this month also contributed to strengthening rupiah, he said.

The rupiah strengthening, however, would be curbed by negative sentiment from the United State with the Fed plans to raise its interest rate.

"The Fed sentiment would continue shadow rupiah as long as there is no certainty of the Fed fund rate," he said.

Economist Samuel Sekuritas Rangga Cipta said there was less selling pressure in the foreign exchange market indicating the impact of the Greek default is not as bad as feared in the country.

There are , however, some market players still worried by the Greek crisi8s, putting a brake on rupiah rise, he said.

Meanwhile, the Jakarta composite index (JCI) closed lower on Tuesday.

The index of the Indonesian Stock Exchange (BEI) fell 10.69 points or 0.22 percent to 4,906.05 points with index of 45 most liquid stocks down 0.,37 percent to 839.86 points.

Chief researcher of Universal Broker Indonesia Satrio Utomo said technically the JCI has hit the rock bottom that a reversal is expected to follow.

"If we see the domestic factors , there is optimism ahead of the release of economic data of the second quarter in the middle of this month," Satrio said.

He said he hoped that the condition in the regional market would improve encouraging the market players in the country to buy shares pushing up the share prices.

Analyst of HD Capital Yuganur Wijanarko said some of the market players began to buy shares selectively reducing the pressure on the JCI ton Tuesday.

"The share buying action by the market players indicated optimism that the negative impact of the Greek default and Chinese economic slowdown began to recede," he said.

There were 206,307 transactions in Tuesdays trade with 3.38 billion shares valued at Rp3.40 trillion changing hands.

Decliner outnumbered gainers by 133 to 126 with 114 shares remaining flat.

Regional markets such as Hang Seng recorded a decline in index while Nikkei and Straits Times recorded gain.
(Uu.H-ASG/H-YH)

Editor: Priyambodo RH
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