TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta slipped by 40 points at the end of Wednesday's trading session to conclude trading at Rp 13,362 against the greenback - down from its' previous position at Rp 13,322 per USDollar.
"The US Dollar is appreciating against the Rupiah as the situation in Greece and China puts a great deal of strain on the currencies of developing economies - which are considered as riskier," said the Head of Research for Monex Investindo Futures, Ariston Tjendra, in Jakarta on Wednesday, July 8, 2015.
It is known that the Chinese share market have lost almost 30 percent of its value in the past three weeks.
Such developments have driven investors to seek out 'safe haven' assets such as the US Dollar. "The greenback is still considered as relatively more stable, which could help shield market players from further losses," said Tjendra.
Tjendra also said that the USDollar could appreciate further if the US Federal Reserves decides to raise its Fund rate - in fact, market players are already looking into clues as to when the Fed will do so in 2015.
An analyst for Bank Himpunan Saudara, Rully Nova, hopes that Indonesia's economic fundamentals are good enough for it to help the economy withstand external shocks, which will help the Rupiah defend its' value. "Indonesia's economic growth are relatively better, compared toother countries," he said.
Meanwhile, Bank Indonesia's middle rate on Wednesday's close stood at Rp13,346 per US Dollar - down from its' previous position at Rp 13,313 per USDollar.