JAKARTA: The Indonesian rupiah closed steady against the U.S.

JAKARTA: The Indonesian rupiah closed steady against the U.S. dollar in very dull trading Tuesday, though dealers warn the local unit will weaken if trouble erupts in this predominantly Muslim nation in the event of a U.S. attack on Afghanistan.

Radical groups in Indonesia have threatened to target U.S. interests here if Washington punishes Afghanistan's Taliban rulers for harboring Osama bin Laden, the main suspect behind the Sept. 11 terrorist attacks on the U.S.

The dollar closed at Rp 9,510 Tuesday, marginally above Monday's Rp 9,505.

"Trading was cautious with no participants willing to take fresh positions," said a dealer with a foreign bank. "But the dollar will rise if radical Indonesian Muslims attack U.S. interests in Indonesia."

For the moment, market participants will likely adopt a cautious stance and the dollar is expected to trade between Rp 9,485 and Rp 9,525 Wednesday.