"Rupiah extended gain against the US dollar partly boosted by auction of state bonds that attracted investors," chief researcher of Monex Investindo Futures Ariston Tjendra di Jakarta said.
The debt management directorate general of the finance ministry said the government sold Rp16 trillion worth of the four series bonds with demand of Rp40.23 trillion.
The auction exceeded the indicative target set earlier at Rp12 trillion.
Ariston Tjendra said the high demand showed the confidence of investors in the countrys economy.
The governments program of infrastructure development to support long term economic development gave greater confidence of investors in Indonesia, he said.
External factors strengthening rupiah is Greek new debt proposal that would mean it would write off debts gave positive sentiment to the financial markets in developing economies including Indonesia.
"The Greek policy caused euphoria in financial market encouraging change in portfolio from safe haven currencies like the US dollar to risky currencies," he said.
However, the rupiah strengthening would be a short term change, he said, adding market players in the country are also awaiting data of current account balance to be announced by Bank Indonesia, he said.
"Surplus is expected in the current account balance that the trend would continue," he said.(*)
Editor: Heru Purwanto
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