The Indonesian currency traded at Rp9,060 per dollar in the Jakarta interbank spot market on Thursday morning, compared to Rp9,045 one day earlier.
"Sentiment on the global market remains negative because Germany`s data is worsening beyond expectations," money market analyst Lana Soelistianingsih of securities firm Samuel Sekuritas said.
Further, the negative market sentiment was a response to an unexpected decline in Europe`s manufacturing and service output, she said.
"Europe`s purchasing manager index fell to 49.7 in February from 50.4 in January. The other report suggested that the expansion of Germany`s service and manufacturing sectors has unexpectedly been slowing down, with orders for manufactured goods declining," she noted.
Soelistianingsih said many investors have begun to fear that the second tranche of bailout funds for Greece will apparently not be enough to end the acute debt crisis in the European Union. Even debt rating agency Fitch has downgraded Greece`s sovereign debt rating to "C" from "CCC".
"It seems that the negative sentiment toward the European and US markets will spread to the Asian market, including Indonesia today, and the looming rise in the price of subsidized fuels will put pressure on the rupiah," she said.
Managing research officer Reza Priyambada of Indosurya Asset Management said the rupiah`s weakening against the US greenback was fueled by the response of market players following the second tranche of bailout funds to Greece.
He added, though, that the 130 billion euro bailout package had been agreed upon following 13 hours of heated negotiations, while the market doubted whether Greece could implement the unpopular austerity policy.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
