The Indonesian currency was traded at Rp11,410 per dollar in the Jakarta interbank spot market on Wednesday evening, up 15 points from Rp11,425 per dollar the previous day.
Ruly Nova, a money market observer from Bank Himpunan Saudara, stated that the efforts of China, one of Indonesia`s major export destinations, to improve its economy will have a positive impact on the rupiah.
"China`s manufacturing data was quite good and reflected growth. This external sentiment has strengthened the rupiah against the US dollar. It will also have a positive effect on other regional currencies," he said.
Nova noted that the economic situation in Europe had also improved, which boosted consumer confidence in many euro-zone countries.
However, he expressed concern that Indonesia`s widening current account deficit continued to be an obstacle to rupiah`s appreciation.
"As internal factors are putting pressure on the domestic money market, investor confidence in the domestic market is eroding," Nova explained.
According to Bank Indonesia`s mid rate on Wednesday, the rupiah weakened to Rp10,093 per dollar against Rp10,983 per dollar the previous day. (*)15:30
Editor: Heru Purwanto
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