Indonesia's central bank is confident that the rupiah currency will continue to regain ground against the dollar until the end of 2024, as capital inflows have returned after its recent unexpected rate hike, its governor said on Friday.

"The rupiah's appreciation will continue from now on until end of the year if we look at market data," Bank Indonesia (BI) Governor Perry Warjiyo told a joint press conference with other Indonesian financial regulators, referring to exchange rates for non-deliverable forward transactions.

He repeated that BI thinks the rupiah exchange rate is heading toward 16,000 a dollar in the near term, before further strengthening to 15,800.

The rupiah closed at 16,080 per dollar on Friday, firming 0.62% from its previous close, but it has still lost about 4% against the buoyant U.S. dollar so far this year as expectations of Federal Reserve rate cuts in 2024 dwindle.

BI last month delivered a surprise rate hike to support the rupiah, after it fell to four-year lows amid risk-off sentiment in global markets.

Starting next week, BI will also increase auctions of its rupiah securities, known as SRBI, to twice a week from once a week, to attract more capital inflows, the governor said.

Warjiyo said Indonesia's economic prospects would further bolster market confidence on the rupiah. He predicted Indonesia will maintain GDP growth at above 5% this year, with low inflation.

Southeast Asia's largest economy grew 5.05% last year. The statistics bureau is due to release first-quarter GDP data on Monday.

(Reporting by Stefanno Sulaiman; Editing by John Mair, Martin Petty, Gayatri Suroyo and Kim Coghill)