Rupiah Value Fall Against The U.S. Dollar

Jakarta, Sept 1 (Antara) - The rupiah value fell against the US dollar closing at the level of 11,693 per dollar on Monday from earlier level of 11,690 per dollar. Financial market observer Rully Nova from Bank Himpunan Saudara said external sentiment came from the United States keeping rupiah in negative area despite surplus in the country`s trade and stable inflation. The Central Bureau of Statistic recorded a surplus of US$123.7 million in Indonesian trade in July 2014 with export valued at US$14.18 billion . The country`s inflation in August was recorded at 0.47 percent or lower than 1.12 percent in the same month last year. "Rupiah moved levelly but tended to weaken. US economic data which were positive marked with a decline in unemployment rate to 6.2 percent from 7.3 percent earlier strengthen the US dollar," Rully said. Meanwhile, the US economic growth in the second quarter of this year was expected to grow 4.2 percent, higher than previous expectation of 4 percent. "Improvement of the US economic data would encourage the Fed to to raise its interest rate earlier," he said. In addition the Ukraine sentiment still continue to put pressure on rupiah to remain in negative area. "The market players also are awaiting the policy of the European Central Bank this week," he said . However, rupiah is relatively stable hovering at the level of 11,600-11,700 per dollar, he said. "Protection by Bank Indonesia keeps rupiah stable," he said. He said the possibility of rupiah to strengthen is high if there was certainty in raising the prices of oil fuel (BBM). An increase in BBM price would widen the fiscal space to support economic development, he adde3d. "Currently the fiscal space is limited that make it difficult in boosting economic growth<" he said.