Jakarta - The rupiah stabilized at Rp9,227/9,235 per dollar in the Jakarta interbank spot market on Wednesday evening with investors to make transactions with caution in the money market, a foreign exchange analyst said.

"Investors are still waiting for the government's decision to raise fuel oil prices. However, Bank Indonesia's decision to raise its key rate by 25 basis points to 8.25 percent on Tuesday has sent a positive sentiment," Rully Nova of PT Bank Himpunan Saudara Tbk said on Wednesday.

But the positive sentiment did not last long due to negative pressures resulting from the higher global crude prices, he said.

The global crude prices had now reached US$122 a barrel, he said.

The rupiah's stable exchange rate against the dollar was the result of a decline in the monthly inflation rate to 0.59 percent in April and the higher difference between the rupiah interest rate and the US Federal Reserve's benchmark rate that prompted investors to do business in the domestic market, he said.

He said the rupiah's exchange rate which currently ranged from Rp9,220 to Rp9,240 per dollar was quite safe because it was still below the psychological level of Rp9,300 per dollar.

The rupiah's exchange rate remained at the level for a quite long time, suggesting that  market sentiments toward the local currency were still high, he said.

The rupiah also received a boost following a report that the country had obtained Rp21 trillion in loans from foreign creditors, he said.

But the positive sentiment was unable to cause the rupiah to further strengthen and it even came under pressure due to the public's worries over the government's plan to raise fuel prices, he said.

After all, Indonesia remained a potential market thanks to its abundant natural resources and large population, he said.