Rupiah traded at the level of 9,820 per dollar in inter-bank transactions gaining 18 points from 9,838 earlier.
"BI has been aggressive in resisting the market in the past two days amid growing demand for dollar either for real requirement or speculation," Samuel Sekuritas` economist Lana Soelistianingsih said.
Lana said BI has played a significant role in protecting rupiah placing the Indonesian currency in positive area, adding the move might signal liberalizing the BI benchmark interest rate .
The central bank has for quite a long time maintained its benchmark interest rate at 5.75 percent
In addition, BI has raised the interest rate on deposit from 4 percent to 4.25 percent, she said.
"The BI`s decision might be effective in short term but the market players still wait and see what would come from the government plan to raise the prices of subsidized oil fuels," she added.
Ruly Nova, a financial market observer from Bank Himpunan Saudara, said the country`s economic potential growth would remain one of the drivers of rupiah to regain lost value.
The rupiah fall in the past several days was attributable more to external factors such as Chinese economic slowdown.
He said the currency would regain some of its lost value after finally the government announced an increase in the prices of subsidized oil fuels.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
