RUPIAH GAINS AGAINST US DOLLAR EARLY TUESDAY

Jakarta, May 19 (ANTARA) - The rupiah gained to below the level of Rp10,000 per US dollar in the Jakarta interbank spot market here early Tuesday, as investors again hunted the local currency, after a sharp fall last week.

The Indonesian currency traded at Rp10,375/10,380, up 35 points from Rp10,410/10,420 per US dollar at the market's close a day earlier.

The rupiah had been expected to strengthen following a better indicator of the Indonesian macro economy, Farial Anwar, a domestic money market observer, said here on Tuesday.

It was quite normal if investors again purchased the Indonesian currency and bolstered the local unit to strengthen, he said.

If there was no obstacle, the rupiah might reach the level of nearly Rp10,300 per US dollar as the market's positive sentiment continued, he said.

"We are optimistic the market is supporting so that the rupiah movement will be approaching the level of Pr10,300 per US dollar," he said.

The rupiah had earlier gained 50 points against the US greenback, as investors were enthusiastic in buying the local currency, following the request of the National Audit Agency (BPK) to the Indonesian government to cooperate with the US central bank, the Federal Reserve, in order to protect the stability of the rupiah, he said.