Rupiah traded at 9,655 to the US dollar rising in value from the level of 9,685 in inter-bank transactions here on Friday .
"The rupiah regained part of its value lost earlier after Chinese data gave rise to strong expectation about global economic recovery," Trust Securities` analyst Reza Priyambada said here on Friday.
Reza said the rupiah appreciation against the dollar is also driven by developments in Middle East after Iran announced plan to hold military exercise in the Hormuz strait.
"The sentiment pushed up the world`s oil prices triggering dollar fall and bringing about rally of shares of other commodities," he added.
He said the sentiments form Europe are also promising with positive consumer confidence index in France and rising Italian business confidence.
"Indirectly the positive impact of the sentiments was good from rupiah," he added.
Samuel Sekuritas` market observer Lana Soelistianingsih said the rupiah has the potential to strengthen further.
The strengthening is also attributable to intervention by Bank Indonesia amid the relatively quiet market today, Lana said.
She said without intervention the rupiah would sink deeper.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
