Don't worry about rupiah volatility: BI

Thursday, 18 February 2010

The Jakarta Post

The central bank said the market should not be worried by the recent volatility of the rupiah, which is affected by the global fear of Greece’s sovereign debt.

"There is always a factor that will influence market sentiment. Because Greece's budget is worsening, the rupiah and the stock index are worsening. Don't be too cautious with the recent changes," acting Bank Indonesia governor Darmin Nasution said Thursday.

The rupiah on Thursday dropped 0.5 percent to 9,326 – the biggest in nearly two weeks – as investors spurned emerging-market assets on signs bond investors are not convinced the EU can fix its budget woes, Bloomberg reported.