Rupiah closes stronger at Rp18,091 per US dollar after S&P holds BBB

The rupiah closed 18 points stronger at Rp18,091 per US dollar in Tuesday trading, reversing an earlier decline to Rp18,115 per US dollar. The move was supported by market reaction after S&P Global Ratings affirmed Indonesia's credit rating at BBB with a stable outlook and projected economic growth of about 5 percent a year over the next three years. But the gains were seen as limited. Permata Bank chief economist Josua Pardede said market participants were still holding positions while waiting for June US inflation data and a statement from the US central bank chief on July 14. Oil prices also weighed on the currency after Brent rose to 78,6 US dollars per barrel, as higher energy costs risk adding to Indonesia's import burden and inflation.