REPUBLIKA.CO.ID, JAKARTA -- Rupiah regained more value in interbank-transaction against the US dollar on Friday.

The currency closed at the level of 11,856 per dollar strengthening from the previous level of 11,975.

"The country's narrowing current account deficit contributed to the rupiah appreciation," chief researcher of Monex Investindo Futures, Ariston Tjendra, said here on Friday.

The current account deficit was US$4 billion or 1.98 percent of the country's Gross Domestic Product (GDP) in the last quarter of 2013.

The deficit narrowed from US$8.4 billion or 3.85 percent of GDP in the previous quarter or from US%9.90 billion or 4.4 percent of GDP in the second quarter of 2013.

Ariston said the deficit ratio to GDP is expected to shrink further in 2014 to follow the improvement recorded in the country's economic condition.

Externally US economic data that fell short of market expectation pushed up demand for risk assets including rupiah, he said.

The US economic condition gave rise to assumption that the Fed would delay further trimming of its bond buying program, he said.

Meanwhile, domestically political condition is favorable giving convenience to investors.

Financial market observer from Bank Himpunan Saudara, Rully Nova, said an increase in Indonesian foreign exchange reserves also contributed to the rupiah appreciation.

Indonesian foreign exchange reserves rose to US$100.7 billion in January 2014 from US$99.4 billion in Dec. and US$97 billion in Nov. 2013.

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