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Rupiah strengthens to 13,323 per dollar
The rupiah interbank trade rate strengthened by 32 points to Rp 13,323 per US dollar on Tuesday's morning session from Rp 13,355 per dollar on the previous trade
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he rupiah interbank trade rate strengthened by 32 points to Rp 13,323 per US dollar on Tuesday's morning session from Rp 13,355 per dollar on the previous trade.
"The rupiah strengthening was caused by technical factors, but its movement was prone to correction because of the many negative sentiments in the global market," NH Korindo Securities Indonesia research head Reza Priyambada said as quoted by Antara news agency.
Reza said that the absence of a settlement of the Greek debt crisis, which led to the closure of several banks in Greece, had put pressure on the euro.
"This situation could make a negative impact on Asian currency markets, including Indonesia's. This will push demand for the dollar upward as a safe haven, thereby pressuring the rupiah," he said
Meanwhile, Samuel Securitas economist Rangga Cipta said that even though fundamentally the impact on Indonesia of the Greek crisis was minimal, the short-term affect for global portfolio adjustment would put pressure on the domestic foreign exchange market either in rupiah, stocks, or securities.
"The high level of foreign ownership in the stock and bond markets could threaten the stability of the domestic foreign exchange market, especially if Greece really goes out of the eurozone," Rangga said. (hhr)(+++)
