Rupiah Stable Against U.S. Dollar on Monday's Opening

Jakarta, July 15 (Antara) - The rupiah value was stable against the US dollar in Monday`s opening trade on protection from Bank Indonesia (BI), analysts said. Rupiah traded at the level of 9,985 per dollar in inter-bank transaction dollar, Samuel Sekuritas` economist Lana Soelistianingsih said here on Monday. The pressure on rupiah continues especially after the announcement of a decline in the country`s foreign exchange reserve, but protection by the central bank kept the rupiah stable, Lana said. In a bid to protect rupiah the central bank has spent big buying rupiah from the market resulting in a decline in the country`s foreign exchange reserve from more than US$110 billion to Rp98.1 billion over the past several months. PT Platon Niaga Berjangka`s analyst Lukman Leong said rupiah fall against the dollar lately was normal. "Fundamentally, the domestic economy has not contributed to rupiah rise," Lukman said. He said two main domestic factors weakening rupiah are deficit in the country`s trade balance and high inflation expectation. He said rising inflation put pressure on the commodity market and in long term, rupiah would be on the decline.