REPUBLIKA.CO.ID, JAKARTA -- The rupiah value rose slightly in interbank transactions on Monday on big share sales by foreign investors, analyst said.
The currency traded at the level of 12,170 per US dollar in the first minutes of trading on Monday gaining from the level of 12,179 earlier.
"The gain, attributable to big share sales by foreign investors in the stock market, tended to be slim," chief researcher of Trust Securities, Reza Priyambada, said.
Reza said market players began to anticipate a surge in the domestic inflation as a result of the devastating flooding in most areas of the country over the past two weeks.
The floodings have hampered distribution of essential goods sending the prices sky high, he said.
In addition a numbr of other Asian currencies weakened on Chinese manufacturing data that served negative sentiment to the domestic financial market, he said.
"Bank Indonesia is expected to watch and seeks to keep stability in the financial market," he said.
Worries about the impact of Argentina's potential default and political turmoil in Thailand contributed to negative sentiment in the market, he added.
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