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.
The government will keep a close eye on Euro zone debt worries, which may send jitters to stocks and bonds as well as the local currency, the Finance Ministry said.
Concern that some European nations will find it difficult to finance their budget deficits might further cast a shadow in the local stock and currency market.
The rupiah may weaken to Rp 9,700 per US dollar by the end of the first three months of 2010 as investors buy dollars, in the light of uncertainties on the global economic recovery, Standard Charte
The 16-nation euro hit a new 14-month high against the dollar on Thursday after the Federal Reserve indicated it was in no rush to raise interest rates.