RUPIAH WEAKENS ON PROFIT TAKING

Jakarta, May 1 (ANTARA) - The rupiah weakened against the US dollar in the Jakarta interbank spot market, here on Friday morning, on profit taking.

The Indonesian currency traded at Rp10,645/10,655 per US dollar, down Rp10,580/1,590 per US dollar.

Investors released the local unit, despite reports on the US' improved economic indicators, Edwin Sinaga, a market analyst, said here on Friday.

They wanted to take profit following the rupiah rally, he said.

However, he believed that the rupiah's depreciation would not continue for long, and the local currency would again strengthen given the market's ongoing positive sentiment.

"We predict that the rupiah still has a big chance to advance again, because the rupiah's depreciation just now is only due to profit taking," he said.

The rupiah would be able to pass the level of Rp10,500 per US dollar, he said.

However, he hoped that the rupiah's gain would not be too rapid because it could worry exporters.

Foreign capital inflow in the domestic capital market significantly contributed to positive sentiment in the market, he said, adding that Middle East investors were very much interested in putting their funds in the 'syariah' (Islamic based) capital market, he said.