ANZ note that "the rupiah is one of......>

DOLLAR-IDR: ANZ note that "the rupiah is one of the worst performing Asian

currencies in July to date, as Bank Indonesia's debt monetisation plan and

prospects for further monetary policy easing weighed on the currency. While

recent US dollar weakness has provided the rupiah with some respite, we are

heading into a period which has historically seen the rupiah weaken consistently

since 2004. The reason for the rupiah's poor performance in the month of August

could be due to the repatriation of accumulated dividend payments by foreign

investors. But with dividend payments this year down by a fifth compared to last

year, the pressure from dividend repatriation may not be as strong compared to

previous years. We remain constructive on the rupiah, as the currency is

under-valued relative to our fair value estimate, and we see foreign investor

concerns over debt monetisation easing. This should pave the way for a pick-up

in bond inflows given the yield attractiveness, which tend to lead to a

strengthening in the currency. But we will need to get past the August

seasonality effect first."