Jakarta - The rupiah exchange rate has the opportunity to strengthen as market participants' optimism is triggered by reports of company performance that continue to improve amid the pandemic.

"Positive sentiment seems to have returned to risk assets," said money market analyst Ariston Tjendra in Jakarta.

He added that the correction in US government bond yields also supported market sentiment towards risk.

The 10-year tenor yield corrected back below 1.6%, currently at around 1.57%.

Domestically, the improving economic situation and a relatively large trade balance surplus have supported the strengthening of the rupiah.

"The potential for strengthening towards the range of 14050 per US dollar with potential resistance in the range of 14110 per US dollar," he said.