Rupiah getting worse, the European Crisis Worsens

JAKARTA - The rupiah currency is still continuing weakness that has been going on since Monday (09/05/2011) yesterday. Increasingly worsening debt crisis in Europe led to the level of demand for emerging market assets come trimmed.

MSCI Asia Pacific Index slipped to their lowest level in two weeks. One of the triggers, the defeat of German Chancellor Angela Merkel's party in the elections raised concerns that aid to troubled countries in Europe will cease.

"The main issue is still related to the debt crisis of Europe. It weakens almost all Asian currencies, including dollars," explains Lindawati Susanto, Head of Treasury PT Bank Resona Perdania, as quoted by Cash, Tuesday (06/09/2011).

According Lindawati, stock markets in the region are very weak and investors will look at how the Indonesian stock market movements this morning. Nevertheless, he continued, Garuda weaker currency (rupiah) will be limited as inflation rates remain the lowest in the last year.

"This indicates that Indonesia is very strong fundamentals," said Lindawati. On Tuesday, the rupiah weakened 0.3 percent to Rp 8563 per dollar.

Source: TribunNews

Posted in: Banking,Currency Exchange,Dollar,PT Bank Rakyat Indonesia (BRI)