The Syriza party, a broad coalition of factions that support Greece’s withdrawal from the Eurozone, posted a clear victory in the Greek legislative election having obtained 36 percent of the vote or 149 seats (with nearly all of the votes counted). Incumbent governing party New Democracy only managed to obtain 28 percent of the vote. Syriza may engage in a coalition with a small right-wing party to obtain an absolute majority. A Greek exit from the Eurozone brings major uncertainty over future economic unity of the region. As a result, the euro has fallen to its lowest level against the US dollar since 2003 (at USD $1.1152).

Japan’s yen appreciation is also placing downward pressure on Asian assets as it triggers a flight to safe havens.

Last week, the European Central Bank (ECB) officially announced a massive 60 million euro per month bond-buying program (known as quantitative easing) up to (at least) September 2016 in a move to boost the region’s economy. This program will increase liquidity and is expected to encourage investment in emerging markets, including Indonesia, as investors seek more attractive (yet riskier) yields.

Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.59 percent to IDR 12,517 per US dollar on Monday (26/01).

Indonesian Rupiah versus US Dollar (JISDOR):

| Source: Bank Indonesia