Rupiah Falls as Moody’s Downgrades Spain, Recovers
The Indonesian rupiah fell today, leading other Asian currencies in decline, after Moody’s Investors Service downgraded Spain’s sovereign-credit rating, refueling concerns caused by the crisis in the countries of the eurozone. Currently the rupiah recovered after the loss.
Moody’s announced that it “downgraded Spain’s government bond rating to Baa3 from A3, and has also placed it on review for possible further downgrade”. The reasons for such decision the rating agency cited were: a bailout that will increase the debt burden of the country, very limited access to financial markets and the weakness of the Spanish economy. The announcement had a very bad impact on mood of Forex traders that were already tense ahead of the Greek elections this weekend.
USD/IDR jumped as high as 9,472.5000 before retreating to the opening level of 9,397.5000 as of 13:06 GMT today.
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Earlier News About the Indonesian Rupiah:
- Indonesia Rupiah Advances as Intervention Anticipated (2012-05-11)
- Indonesian Rupiah Rises with Other Asian Currencies on Positive Sentiment (2011-12-16)
- Indonesian Rupiah Falls as Central Bank Cuts Interest Rates (2011-11-10)
- Indonesia Intervenes to Support Rupiah, India & South Korea Follow (2011-09-14)
- Worries About Europe Ease, Indonesian Rupiah Gains (2011-06-06)