Rupiah Edges Down In First Minutes Of Trading

Jakarta, Jan 16 (Antara) - The national currency lost 16 points against the US dollar in inter-bank transaction in the first minutes of trading on Friday. Rupiah traded at the level of 12,564 per dollar from earlier level of 12,548 per dollar. Monex Investindo Futures` analyst Zulfirman Basir attributed the rupiah fall to Swiss central bank`s move to strengthen its currency resulting in safe have assets like the US dollar gaining strength. "Investors see the Swiss move as a sign that Switzerland was worried about the European economy," Zulfirman said. A statement by chairperson of the International Monetary Fund Christine Lagarde that investment and consumption in many countries including China , the world`s second largest economy added to the market concerns. Zulfirman , however, said that the decision of Bank Indonesia (BI) in maintaining its benchmark interest rate would help keep rupiah from diving too deep. On Thursday, Bank Indonesia maintained its high interest rate of 7.75 percent to control inflation and improve the deficit hit current account balance, he added. Financial market observer from Bank Himpunan Saudara, Rully Nova, said the central bank`s decision to maintain its interest rate indicated that inflation level is still as expected.