Free Trial

Above 15800, Both FinMin & BI Governor See Better IDR Trends As 2024 Progresses

IDR

USD/IDR is close to unchanged, last just above 15810. We are off recent highs above 15840, with focus remaining on BI intervention risks, after last week's spike higher. A move above 15900 would have threatened Octo 2023 highs. The 1 month NDF is down slightly from end Monday levels, last near 15820,

  • Comments crossed the wires from the Indonesia FinMin and BI Governor a short while ago. The FinMin stating that the local will have a tendency to strengthen going forward, as USD pressure eases. The BI Governor stated that the currency should be stronger in the second half.
  • Both are likely referencing the likelihood of lower US rates curbing USD demand as we progress through 2024.
  • Such rhetoric may also suggest a firmer line in the sand against rupiah weakness.
  • The data calendar swings back into gear on Thursday, with CPI and PMI prints for Jan.
  • Broader risk pressure has eased somewhat for IDR, with US real yields lower. 5yr CDS has ticked down a touch for Indonesia, but remains with recent ranges.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.