Indonesian shares 1.7 percent lower

Indonesian shares closed 1.7 percent lower Monday as the weak rupiah dimmed hopes of an interest rate cut after January's benign inflation rate, dealers said. The Jakarta Composite Index fell 22.02 points to 1,310.64 in thin trade.
"Investors are now worrying about the state of the rupiah. If it continues to fall it could hurt the earnings of many companies," a trader told Dow Jones Newswires. Telkom fell 4.8 percent to 5,950 rupiah, nickel miner Inco dropped 5.1 percent to 2,350, Bank Rakyat fell 4.4 percent to 4,375. The rupiah closed weaker at 11,750 to the dollar compared to 11,450 previously.