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Indonesia rupiah edges down, eyes unrest in Lombok

JAKARTA: The rupiah edged lower in early trade on Tuesday, extending its losses after anti-Christian riots on the tourist island of Lombok rattled the currency the previous day.

The rupiah IDR was trading at 7,280/7,300 to the dollar compared with 7,245/7,275 in late trade on Monday.

Dealers said the market was worried the Lombok riots could spread to other regions in Indonesia.

Thousands of angry Moslems went on a rampage on Monday, torching churches after a rally calling for an end to religious violence in the Moluccas turned violent.

Reports said the riots continued until early Tuesday morning.

Corporate demand for dollars to repay debts or finance imports was also continuing, dealers said.

"I see the rupiah now moving in a range of between 7,200 and 7,350 against the dollar," said a foreign bank dealer.

Dealers said many players are seen staying on the sidelines ahead of the announcement of the state budget on Thursday.

"Basically the market would only react if there were unexpected or new issues in the budget, otherwise it is already factored into the market," said another dealer.-Reuters