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Rupiah weakens to Rp 12,480 per dollar at Monday's opening
The rupiah interbank trade rate weakened by 25 basis points to Rp12,480 per US dollar during the morning trading session on Monday
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The rupiah interbank trade rate weakened by 25 basis points to Rp12,480 per US dollar during the morning trading session on Monday.
Samuel Sekuritas economist Rangga Cipta said that the fall of the domestic currency was triggered by the fact that Syriza Party won elections in Greece, increasing the possibility that Greece will exit the Eurozone.
'This situation has put more pressure on the euro, affecting many currencies across the globe including the rupiah,' Rangga said on Monday as quoted by Antara news agency.
He added that the exit would increase investor concern regarding the condition of the global economy, because a number of scheduled financial programs would be changed immediately.
Separately, Woori Korindo Securities Indonesia head of research Reza Priyambada said that Greece's exit would disturb the government's bailout program.
'The rupiah, however, is likely to remain relatively stable because it is still supported by positive sentiments in the domestic market,' Reza added.
He said that market players were optimistic that the Indonesian economy could grow by between 5.6 and 5.8 percent throughout the 2015 fiscal year.
In addition, he said that Chinese gross domestic product (GDP), which grew by 7.4 percent throughout 2014, higher than the market had predicted, had helped strengthen the rupiah in the market. (nfo)
