Indonesia's central bank says rupiah is slightly undervalued

[JAKARTA] Indonesia's rupiah currency is slightly weaker than it should be, the central bank governor said on Friday.

"At this time the rupiah is slightly undervalued," Governor Agus Martowardojo told reporters, adding that the central bank"will always be in the market but we are not maintaining the rupiah at a certain level."

The rupiah, trading on Friday at 13,330 per dollar, is one of emerging Asia's worst-performing currencies this year having lost about 7 per cent.

Mr Agus said that he hoped inflation, which accelerated to 7.26 year on year per cent in June, the highest this year, should slow tio below 7 per cent in July.

REUTERS