The rupiah has continued to appreciate against the US dollar, reaching a seven-year high of Rp8,543:US$1 in early May. The currency has now gained around 5% against the US dollar this year. In late April a BI deputy governor, Budi Mulya, said that it was impossible to resist the strengthening trend in the currency, and added that the central bank was content to use the rupiah's appreciation to help contain inflation. A stronger rupiah helps to reduce the cost of imports in local-currency terms. The appreciation of the currency has been driven by a surge of foreign funds into local markets. Strong economic fundamentals and good growth prospects, combined with low returns in developed markets, have drawn funds into leading emerging markets-including Indonesia. Earlier, concerns over rising inflation led foreign investors to withdraw funds from the local market, leading to a fall over a few days in January of around 10% in the value of shares listed on the main stockmarket index, the Jakarta Composite Index (JCI). However, policymakers have since regained the confidence of the markets. Foreign investors added US$2bn in net terms to their holdings of Indonesian equities in April alone and now account for 60% of market capitalisation. The JCI hit a record high of 3,820 points in late April. Foreign investors also purchased government debt worth Rp7trn in that month.