A Sense Of Crisis

Spot USD/IDR has added 34 figs and last trades at IDR14,532, with the rupiah wounded by Indonesia's dire Covid-19 situation. Bulls look for a break above Jul 2 high of IDR14,568, which would shift focus to Apr 13 - 15 highs of IDR14,633-14,635. Conversely, a fall through Jul 13 low of IDR14,462 would encourage bears to take aim at Jun 28 low of IDR14,415.

• USD/IDR 1-month NDF last seen +39 figs at IDR14,585. A move through Jul 8 high of IDR14,664 would please bulls, while bears keep an eye on Jul 16 low of IDR14,487.
• Pres Jokowi called for a "sense of crisis" among his ministers and asked them to exercise "social sensitivity," after their foreign travels caused public backlash. The country has become one of the top global Covid-19 hotspots and its daily death count topped that of Brazil on Sunday, even as new cases eased below 50,000. LaporCovid19 platform reported that at least 650 patients died after being refused admission to overburdened hospitals.
• Min Luhut who coordinates emergency Covid countermeasures said that the decision on whether to extend curbs in Java and Bali will be announced in the next few days, while Detik reported that the cabinet approved an extension through the end of July last Friday. As a reminder, Indonesia will observe a religious public holiday tomorrow. Local media outlets have drawn parallels with the Idul Fitri holidays in May, which have been linked to the origins of the current wave of Covid-19 infections. The gov't banned public celebrations and restricted mass prayers during the upcoming holidays.
• Bank Indonesia are set to deliver their monetary policy decision on Thursday. Policymakers are expected to leave interest rates unchanged, after Gov Warjiyo appeared to rule out further rate cuts and noted that the central bank will now focus on policy transmission. S&P said Friday that they "do expect some additional easing [from BI], however will that translate into a policy rate cut, it's a little bit more tricky."