Plummeting Euro Puts Pressure on Rupiah

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    TEMPO.CO, Jakarta - The results of the referendum in Greece did not have a significant effect on the Rupiah, which only experienced a limited depreciation on Monday morning, July 6, 2015. However, things may get worse if the uncertainty in Greece causes the Euro to weaken even further.

    An official from Permata Bank Jossua Pardede, said that currently, the Euro is the currency that experienced the biggest effect from the referendum in Greece. Investors moved away from the Euro after 61 percent of the Greek population rejected austerity measures given by creditors.

    On Monday, July 6, 2015, 10:22 Western Indonesia Time, the Euro fell 0.7 percent to 1.1063 per US Dollar while Rupiah strengthened by 0.32 percent to Rp 14,743 per Euro.

    "There will be a deposit to safe haven assets as the risk of a Grexit increases. Investors are waiting for further deliberations with the Troika," Josua said.

    The risk towards the Indonesian market could mount as the ongoing uncertainty in Greece could cause the Euro to weaken even further.