REPUBLIKA.CO.ID, JAKARTA -- The rupiah fell marginally to Rp13,880 to the dollar in the Jakarta inter-bank market on Tuesday evening after it strengthened to Rp13,878 earlier. The domestic positive sentiment was not significant enough to cause the rupiah to continue its rally against the dollar, said the PT Bank Mandiri Tbk money market analyst, Rully Arya Wisnubroto, here on Tuesday.

"There has not been sentiment after the policy rate hike," he added.

On May 30, Bank Indonesia (BI) raised the key rate by another 25 basis points to 4.75 per cent at the extraordinary meeting of the board of governors held to anticipate external risks, particularly the expected second hike in the Fed rate on June 13, 2018. In mid-May, BI had raised the key rate by 25 basis points to 4.5 per cent.

Meanwhile, the Chief of the Central Statistics Agency (BPS), Suhariyanto, on Monday said the inflation rate stood at 0.21 per cent in May as food prices did not rise significantly ahead of Eid-al-Fitr festivities.

The release of the Purchasing Manager's Index (PMI) hike added to the positive sentiment on the rupiah.

Also read: Kadin believes BI to raise key rate again

In addition, the statement by the Finance Minister, Sri Mulyani, that investment was expected to grow 7.5 per cent to 8.3 per cent in 2019 helped the rupiah stay positive.

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