Rupiah Back in Green on Tuesday Morning
27 January 2015 13:38 WIB
TEMPO.CO, Jakarta - The rupiah interbank trade rate in Jakarta went up by 20 points on Tuesday morning. The rupiah began trading at Rp12,487 per United States (US) dollar, up from its previous position at Rp12,507 per US dollar.
The head of research at Woori Korindo Securities Indonesia, Reza Priyambada, said in Jakarta on Tuesday that investors were starting to view a possible Greek exit from the Eurozone as less likely, which alleviated worries among market players. "Such optimism is boosting the value of the rupiah against the greenback," he said.
Reza explained the investors feared the victory of the Greek opposition would pose a negative impact on the financial policy of the monetary union, especially if Greece defaulted on its debt repayment. "We advise market players to be vigilant of any changes that might happen in the near future," he said.
The head of research at Monex Investindo Futures, Ariston Tjendra, concurs the reason why a majority of global currencies are appreciating against the greenback is the fears stemming from the victory of the Syriza Party in the Greek parliamentary election, which subsequently gave rise to fears of an imminent Greek exit from the monetary union.
"The leader of the party in question, Alexis Tsipras, has made it quite clear that he will renegotiate the terms to the bailout," said Ariston.
Ariston added that the rupiah was also boosted by the climbing global oil prices, which rebounded after the Organization of Petroleum Exporting Countries (OPEC) claimed that prices had reached its nadir, which should positively affect the prices of other commodities, an important point to keep in mind since Indonesia is a major commodities exporter.
ANTARA