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Jakarta (ANTARA News) - The rupiah rose five points to Rp9,325/9,330 per dollar in the Jakarta interbank spot market on Wednesday morning after it closed at Rp9,340/9,350 the day before.

"Improvements in the regional stock market fueled by the strengthening of the Wall Street bourse and the fall of the world crude price encouraged traders to purchase rupiahs," Rully Nova, foreign exchange analyst of PT Bank Himpunan Saudara, said here on Wednesday.

He said the volume of rupiahs traded was still relatively small because traders were still cautious about market developments. They were still concerned about fluctuations in the world crude price.

But at least, he said, the rupiah`s surge which had been taking place since Tuesday had moved it to a position that was relatively far from Rp9,400 per dollar. It was feared if the rupiah reached this level, it would continue to plunge.

The rupiah`s surge was also attributed to the abatement in student demonstrations against the fuel oil price hikes. The government raised fuel oil prices by an average of 28.7 percent on Friday last week.

He said the rupiah was expected to continue to strengthen in the wake of the entry into the money market of the central bank, Bank Indonesia (BI).

BI will intervene in the market to boost the rupiah so that it would reach a position under Rp9,300 per dollar, he said.

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