The Jakarta Composite Index (JCI) fell 0.77 percent to 4,288.76 points on Tuesday (03/12). Most other Asian indices were also down, probably influenced by the falling indices on Wall Street on Monday (02/12) but also by ongoing speculation that has arisen that the Federal Reserve will wind down its USD $85 billion per month bond-buying program starting from this month as US economic data are improving.

Bank Indonesia's rupiah mid rate continued to appreciate against the US dollar as market participants were optimistic about the country's USD $42.4 million trade surplus in October 2013 and 0.12 percent inflation in November (month-to-month) although pressures on the rupiah are rising due to local companies' demand for US dollars and speculation about the looming end of the Federal Reserve's quantitative easing program. This speculation causes a rise in value of the US dollar.

| Source: Bank Indonesia

Further Reading:

Rupiah Exchange Rate
 Indonesia Rupiah Exchange Rate Today: Down due to US Dollar Demand
 Indonesia Inflation Update: Consumer Price Index Moving Sideways
 Indonesia's October 2013 Trade Surplus Provides a Glimmer of Hope