The rupiah fall in value was caused more by external sentiments with uncertainty surrounding Greeces debt problem, PT Platon Niaga Berjangkas financial market analyst Lukman Leong said.
Market players tended to invest their money in safe currencies including the US dollar because of the Greek uncertainty resulting in rupiah weakening, Lukman said.
However, there is strong hope that Indonesian economic condition would improve that could jack up rupiah to a positive area.
He said there is expectation that Bank Indonesia would cut its benchmark interest rate (BI rate).
"Market expectation is that the central bank would cut its BI rate following a drop in inflation rate that would boost economic development," he said.(*)
Editor: Heru Purwanto
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