SINGAPORE: The Indonesian rupiah gained on Wednesday, helped by demand from foreign banks a day after a bigger-than-targeted government bond sale, while exporters and some interbank speculators joined the bids, traders said.
Spot rupiah gained 0.2 percent to 9,684 to the dollar as of 0330 GMT. One-month dollar/rupiah non-deliverable forwards (NDFs) fell 0.2 percent to 9,690.
On Tuesday, the finance ministry raised 7.55 trillion rupiah ($777.79 million) at a debt auction, higher than a target of 7 trillion rupiah, the debt office said.
"Higher yields and investment grades are attracting foreigners while corporation performance is doing fine in Indonesia," said BNP Paribas currency strategist Thio Chin Loo in Singapore.
Offshore investors held 279.52 trillion rupiah in conventional bonds as of Feb. 22, compared with 270.52 trillion rupiah at the end of 2012, according to the debt office's data.
Foreign investors have been bringing money into the country's stocks, helping Jakarta's main index reach a record high on Wednesday.
"Capital inflows might have supported the rupiah this month," said a Jakarta-based trader, adding that he expects more funds to come in March.
Still, investors remain worried about the country's inflation and current account deficit, which made the rupiah the worst performing emerging Asian currency last year, with a near 6 percent slide against the dollar.
Local companies including importers were lined up to buy dollar on dips, limiting the rupiah's upside, traders said.
"9,680 is a good support for dollar," a trader said.
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