Rupiah up, shares decline

Rupiah up, shares decline

The rupiah closed higher in thin trade on Monday as disappointing U.S. July jobs data sent the dollar lower across Asia.

The dollar closed at Rp 9,185, down from its close on Friday at 9,195. The dollar touched an intraday low of 9,130 earlier in the day.

Sentiment on the dollar turned soft globally after Friday's U.S. employment data showed the important non-farm payrolls were up by just 32,000 in July after rising a revised 78,000 jobs in June, the slowest pace of growth in eight months and sharply below economists' forecast.

Dealers said the local foreign exchange market will continue to look at the dollar-yen movement for a lead on Tuesday. They expect the dollar to trade between 9,125 and 9,200 on Tuesday.

Meanwhile, shares ended lower, weighed down by losses in many Asian markets and worries that the central bank may further raise interest rates, dealers said.

"It's a cautious and dull market," said a trader with a local securities firm. He said many investors stayed on the sidelines amid an absence of fresh leads.

The Jakarta Stock Exchange composite index ended down 3.892 points, or 0.5 percent, at 750.040.

Decliners led gainers 56 to 42, with 72 stocks unchanged. Volume was 500 million shares valued at Rp 396 billion.

Cigarette maker Hanjaya Mandala Sampoerna led decliners as it fell Rp 200, or 3.6 percent, to Rp 5,350.

Dealers said fears of higher interest rates as the central bank moves to combat inflation pressured many bank stocks.

Dealers said they expect the market to see a slight rebound Tuesday after two consecutive sessions of decline. -- Dow Jones