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Jakarta (ANTARA News) - The rupiah strengthened late Thursday at a lower pace than the day before as investors reduced their rupiah buy-ups, an analyst said.

The rupiah traded at Rp9,010-Rp9,020 per dollar at the Jakarta interbank spot market on Thursday evening against Rp9,030-Rp9,040 a day earlier, up 20 points.

The rupiah rose against the dollar after the Central Statistics Agency (BPS) announced the August inflation rate fell from the previous month, Rully Nova of PT Bank Himpunan Saudara Tbk, said.

The agency said on Wednesday the August inflation rate reached 0.76 percent, bringing the calendar inflation rate to 4.82 percent and the year-on-year inflation rate to 6.44 percent.

The inflation rate hit a 15-month high of 1.57 percent in July 2010, fueled by a rise in the prices of rice and vehicle taxes.

The fall in monthly inflation rate prompted investors to buy the local unit, Rully said.
The rupiah buy-ups suggested that the market was convinced that the Indonesia economy performed well, he said.

"We predict the rupiah still has a chance to strengthen further," he said.

He said foreign investors would continue to invest in the domestic market as Indonesia was one of the promising markets.

"We predict foreign investors will invest more in the domestic market until the end of this year as the domestic economy will perform better," he said.(*)

Editor: Heru
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