Jakarta (ANTARA News) - The rupiah strengthened against the US dollar in the Jakarta interbank spot market here on Tuesday morning as investors purchased the local unit, after releasing it over the two consecutive days.

The Indonesian currency traded at Rp9,435-Rp9,455 per US dollar, up 35 points from Rp9,470-Rp9,485 per US dollar at the market`s close a day earlier.

Investors bought the local currency following gains at Japanese and Hong Kong bourses, Harry Kurniawan, a domestic money market observer, said here on Tuesday.

The rupiah still had a chance to touch the level of Rp9,300 per US dollar, he said.

The market was currently being dominated by the rupiah purchases which boosted the Indonesian currency to reach the level of nearly Rp9,400 he said, Kurniawan, who is also the director of PT Makinta Securities, said.

"We are optimistic that the rupiah could reach the level of Rp9,400 per US dollar at the market`s close, as it previously traded Rp9,365 per US dollar," he said.

He believed that the local currency had a chance to reach the level of Rp9,000 per US dollar at the end of this year because of supporting external and internal factors.

The weakening of the US dollar in the Asian markets was a factor which helped the rupiah to move upward, he said.

Besides, the US trade deficit amounting US$1.6 trillion indicated that the US economic growth was still sluggish, he said.(*)

Editor: Heru
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