"One of the factors causing the rupiah strengthening is the US$2 billion increase in the countrys foreign exchange reserves to US$107.05 billion by the end of May , 2014, Rully Nova, a financial market observer from Bank Himpunan Saudara said.
External sentiment was also positive with the European Central Bank cutting its benchmark interest rate which give positive imp[act on the euro, Rully Nova said.
"The market believed that the ECB pruning its interest rate would have long term positive impact as it would boost the European economic development," he said.
In addition, improved US labor data gave psychological effect on the market players in the financial markets of developing countries.
(SYS/H-ASG/A014)
Editor: Suryanto
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