Rupiah Inches on Greek Bailout Extension
23 February 2015 15:14 WIB
TEMPO.CO, Jakarta - The accord reached by 19 euro zone's finance ministers to extend the bailout program for Greece by four months last Friday created a positive sentiment in global currency exchanges, helping the euro to appreciate against the greenback. The rupiah is also enjoying the sentiment, edging up by one basis point (0.01 percent) to Rp12,831 per US dollar as of 12 pm today.
Other Asian currencies also appreciated against the US dollar, including the Indian rupee that rose 0.01 percent, the Malaysian ringgit that went up by 0.14 percent, and the South Korean won that gained 0.32 percent.
The Greek debt crisis that has been dragging on for the past two weeks had been burdening the rupiah when in fact, fundamentally, the currency is being supported by improving economic data such as the trade surplus and the foreign exchange reserves increase.
The Greek bailout extension agreement, said Samuel Asset Management economist Lana Soelistianingsih, gives the troubled country a chance to continue with their fiscal reform program and avoid bankruptcy.
"The market is relieved that Greece is free from the possibility of bankruptcy as their government is lacking budget," he said.
M. AZHAR | RR
