The currency closed at the level of 12,125 per dollar from earlier level of 12,180 per dollar.
The market players welcomed the decision of the government to raise the price of subsidized oil fuel (BBM), financial market observer Rully Nova of Bank Himpunan Saudara said.
"The BBM price hike increased the confidence of investors in the countrys economy," Rully said.
The pledge to improve infrastructure would attract investors to do business in Indonesia, he said.
The government said the subsidy fund cut from fuels would be used to build infrastructure and improve the public health and education.
The market players, however, are awaiting the decision of Bank Indonesia in controlling inflation as a result if the BBM price hike, he said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2014
