"Greece has sent another worry."Jakarta (ANTARA News) - The rupiah weakened seven points against the US dollar on Tuesday evening as investors were worried about developments in Greece.
The Indonesian currency traded at Rp9,570 per dollar in the Jakarta interbank spot market on Tuesday evening compared to Rp9,563 per dollar the day before.
Negative sentiment returned to the money market as investors were worried about developments in Greece which failed to meet the market expectation following the announcement of quantitative easing (QE) by the Fed, money market analyst Lana Soelistianingsih of Samual Sekuritas said.
"Greece has sent another worry. The Greek coalition government has failed to decide the amount of tight budget," she said.
Greece had earlier promised to slash its budget deficit by 11.5 billion euro in the next two years to clear the way for disbursement of the next bailout funds.
"Though the Greek issue has been going on for the past couple of years it continues to influence investors` sentiment. The Greek issue and solution to the debt crisis at EU will continue to become cause major cause for concern among investors," he said.
In the short run, speculation over the possibility of the Fed giving new stimulus at the September 12-13 meeting would hopefully ease negative sentiment in Greece.
(T.S012/A014)
Editor: Priyambodo RH
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