REPUBLIKA, JAKARTA -- The Indonesian currency rupiah closed stronger on Monday trading at the level of 12,070 per US dollar gaining 36 points from the earlier level of 12,106 per dollar.

In inter-bank trade on Monday afternoon, rupiah regained strength against the US dollar on US inflation not up to market expectation, putting pressure on the dollar, chief researcher of Monex Investindo Futures, Ariston Tjendra, said without giving figure.

Inflation being not up expectation could force the Fed to delay plan to trim its financial stimulus, Ariston said.

The rupiah strengthening, however, is still shadowed by the decision of a meeting of the Federal Open Market Committee (FOMC) to be held this week on the stimulus which has remained a big question for the market, he said.

"The tapering issue has long become a market mover of global financial instruments," he said.

Chief researcher of Trust Securities, Reza Priyambada said the upward movement of rupiah has been curbed by report of improvements in the US unemployment, and retail sales data and consumption.

The data gave improved description of the US economy that would strengthen the US dollar, he said.

Meanwhile, based on Bank Indonesia middle exchange rates, rupiah value fell to 12,105 per dollar from 12,081 earlier.

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