RUPIAH TUMBLES ON PROFIT-TAKING MOVES EARLY WEDNESDAY

Jakarta, July 22 (ANTARA) - The rupiah tumbled 115 points at the Jakarta interbank spot market here early Wednesday, as investors actively released the local currency after it strengthened to nearly Rp10,000 per US dollar a day earlier.

The rupiah traded at Rp10,155-Rp10,165 per US dollar, down 115 points from Rp10,040-Rp10,050 per US dollar at the market's close a day earlier.

Investors were encouraged to buy the US dollar following a statement of the US Federal Reserve Chief that the US economy had passed the basic of the global economic crisis and would recover early next year, according to Kostaman Thayib, Retail Banking Director of PT Bank Mega Tbk.

They bought the US greenback in a large amount, prompting the rupiah to plunge more than 100 points, he said.

However, the rupiah exchange rate was still at a normal position, after it significantly jumped in the previous day. The rupiah's position was at at between Rp10,000 and Rp10,200 per US dollar, he said.

He believed that the depreciation of the rupiah would not last long, as the positive sentiment internally was still high.

Investors sold the Indonesian currency to take profit and at the right rime they would come back to buy the Indonesian currency, he said.

According to him, the US economic recovery was thanks to several US corporations which managed to get quite significant profits in the first semester of 2009.

It indicated that the US economic growth ws better than expected before, he said.