Rupiah extends gain on Wednesday

Jakarta (ANTARA News) - The rupiah value rose against the US dollar in the closing trade of Wednesday on favorable domestic political sentiment.

The currency traded at the level of 11,444 per US dollar gaining from the earlier level of 11,537 per dollar.

"Political sentiment dominated the rupiah movements against the US dollar. The presidential candidates are favored by the market players," financial market observer from PT Platon Niaga Berjangka, Lukman Leong, said.

Lukmaan said political development has been conducive so far creating convenient condition for investors.

In addition, the countrys economic fundamentals would grow to give stronger push for rupiah, he said.

"Strong economic fundamentals would in long term shore up rupiah ,he said, adding , foreign trade deficit and inflation are still under control.

He said rupiah could gain further to hit the level of 11,000 per dollar.

"Rupiah would move in line with Indonesian economic fundamentals," he said.

Meanwhile, the middle rate of Bank Indonesia on Wednesday showed rupiah gained to the level of 11,487 from the earlier level of 11,525 per dollar. (*)