Rupiah , after being on the decline in the past several days gained 32 points trading at the level of 11,828 per US dollar from earlier level of 11,860 per dollar, head of research of Trust Securities Reza Priyambada said.
"Rupiah strengthened on report of a US$2 billion increase in the countrys foreign exchange reserve in May to US$107 billion," he added.
The increase in the foreign exchange reserve indicated improvement in the countrys economic fundamentals, bringing about positive sentiment to the domestic financial market, Reza said.
With the increase in the foreign exchange reserve, Bank Indonesia would have greater strength to protect rupiah from dipping deeper.
"It will also contribute to boosting the countrys economic growth," he added.
Chief researcher of Monex Investindo Futures Ariston Tjendra said the US dollar lost ground after significant gains in the past several days prompting profit taking among holders of the currency. (*)
Editor: Heru Purwanto
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