RUPIAH UP 45 POINTS LATE FRIDAY

Jakarta, June 19 (ANTARA) - The rupiah rose 45 points against the US dollar in the Jakarta interbank spot market late Friday as investors dumped the greenback on profit taking moves.

The local unit traded at Rp10,300-Rp10,315 on Friday compared to Rp10,345-Rp10,345 the day before.

The rupiah strengthened after investors released the dollar in large amounts ahead of the market's close, PT Bank Mega Tbk retail banking director Kostaman Thayib said.

He predicted the rupiah would continue to strengthen due to various positive internal sentiments including an expected low inflation rate this month.

In addition, investors were currently focusing on banks' plan to cut their lending rates, a move that could boost the economy to grow at a faster pace, he said.

The rupiah tumbled against the dollar on Thursday morning to nearly Rp10,300 a dollar on increased demand for the greenback from corporations, especially state companies.

The Indonesian currency traded at Rp10,270-Rp10,285 per dollar, down 20 points from Rp10,250-Rp10,265 at the market's close a day earlier.

The rupiah's depreciation continued as investors kept on buying the greenback to meet their needs, foreign currency analyst Rully Nova of PT Bank Himpunan Saudara Tbk said on Thursday.

Kostaman predicted the rupiah could reach Rp9,500 per dollar at the end of this year if the July 8 presidential election ran peacefully.