The currency traded at the level of 11,684 per dollar in the closing trade gaining from the level of 11,856 per dollar earlier.
"Rupiah recorded the strongest gain over currencies of other developing countries after the country posted narrowing current account deficit," chief researcher of Monex Investindo Futures, Ariston Tjendra, said.
Ariston said the improvement in the countrys current account boosted rupiah in value contributing to regaining investor confidence in the countrys economy.
"The US dollar weakening early this week pushed up the value of assets categorized as risky assets such as currencies of developing nations." he said.
He said currently market players were burdened with weakening US economy that they believe the Fed would reconsider plan to trim its financial stimulus.
"There has been speculation in the market that the Fed might slow the tapering down or even to stop it temporarily because of the poorer US economic performance. The dollar weakening is expected to continue still," he said.
Ariston said optimism is also high after last week report by the government of new loan from China in January, the largest in the past four years.
"The report about the loan succeeded in easing worries over tight monetary policy of the Chinese central bank," he said. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2014
