US Dollar Value

Before Crisis in America, the value of US dollar about Rp. 9300,- but this value currently down until Rp. 8500,- per US dollar, this value down to about 10%. While Australian dollar rise on and on, the value before American crisis about Rp. 6000 per AUD but now about Rp. 8900 per AUD.

Asian governments reacted cautiously to the decision of Standard & Poor's to cut its U.S. debt rating from AAA to AA +. The decision may create trust in the financial markets and cut down the value of their bond assets denominated in U.S. dollars.

It's to AA + rating, meaning the position in the world's richest countries under Liechtenstein and several dozen other countries, equivalent to Belgium and New Zealand. One of China's central bank adviser who is the U.S. government's largest creditors said the decline will lower U.S. dollar exchange rate as well.

For governments in Asia, the downgrades are bad news. Most countries in Asia have a surplus against the U.S. position obtained from the accumulation of U.S. dollars. They have invested a lot of money to buy U.S. government bonds. The U.S. is also the main export markets of Asia, so that the chaos in the U.S. could have implications for Asian economies.

Japan is the second largest U.S. lender after China said that their interest on U.S. bonds has not changed, despite downgrades from S & P. "Our confidence on U.S. bonds and their attractiveness as an investment will not change because the S & P action is," said a Japanese official.

Xia Bin, an adviser to the People's Bank of China said, the decline in U.S. dollar exchange rate will continue. Yoon Jong-won, senior officials at the Ministry of Strategy and Finance South Korea said the decline in credit is not good news, they will observe how the market reaction to this decline.