"Indonesias positive economic fundamentals have helped the rupiah strengthen," Bank Mandiris analyst Renny Eka Putri said.
Data released early this month showed that the inflation rate eased at 0.08 percent in March, the balance of trade recorded a surplus of US$785.3 million in February, and the consumer confidence index rose to 118.2 in March from 116.2 a month earlier, she said.
"In the short run, the data will support the rupiahs appreciation against the dollar," she said.
She said the countrys foreign exchange reserves are expected to remain at above US$100 billion in March, which is enough to maintain economic stability.
On external side, there have been no signs of sentiment supporting the dollars appreciation against other major global currencies in the absence of support from the US economic data, she noted.
In the meantime, market players are waiting for the result of Federal Open Market Committee (FOMC) this week, she said.
According to Bank Indonesias mid-rate on Monday, April 7, the rupiah strengthened to Rp11,282 per dollar from last Fridays close of Rp11,310 per dollar.
(S012/B003)
Reporting by Zubi Mahrofi
(S012/B003)
Editor: Jafar M Sidik
Copyright © ANTARA 2014
