Chief researcher of Trust Securities, Reza Priyambada, said rupiah gained on positive expectation after the government and Bank Bank Indonesia (BI) estimated that the countrys foreign trade was favored with a surplus in February and inflation was stable in March.
In addition the US dollar was still weak against the majority of the global currencies, Reza said.
He said the Indonesian finance minister estimated that the country had a surplus of around US$450 million in February and Bank Indonesia said the countrys inflation in March was estimated to be low at 0.1 percent month on month.
Externally, the strengthening of euro on expectation of improved condition of the economies of the euro zone countries had good impact on the domestic currency, he said.
In addition, the Chinese yuan gave positive signal after the Chinese government plans to increase economic stimulus to forestall economic slowdown, he said.
"Domestic and global economic data are expected to contribute to rupiah strengthening," he said.
Financial market observer from Bank Himpunan Saudara Rully Nova said growing inflow of foreign fund to the domestic market also contributed to the rupiah appreciation .(*)
Editor: Heru Purwanto
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