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Bank Indonesia Steps In To Address Rupiah Volatility


Spot USD/IDR changes hands +42 pips at IDR14,092, flirting with its 50-DMA at typing. Bank Indonesia's intervention helped reign in rupiah depreciation, preventing it from staging a clean break above the aforementioned moving average.

  • Bank Indonesia's Hendarsah commented that the central bank stepped into FX spot & domestic NDF markets to stem rupiah volatility.
    • Bank Indonesia offered 1-month domestic NDF at IDR14,145 through brokers.
    • 1-month NDFs last trade -18 pips at IDR14,176, pulling back towards the 50-DMA after failing to advance far beyond weekly highs.
  • With spot USD/IDR sitting marginally above its 50-DMA (IDR14,086), bulls look for a move through the nearby Jan 18 high of IDR14,103 before targeting Jan 12 high of IDR14,205. On the flip side, a slide through Jan 22 low of IDR13,993 would open up Jan 4 cycle low of IDR13,865.
  • Indonesian Pres Widodo & FinMin Indrawati will attend a meeting on national partnership programme today.
  • Nothing much on the local docket this week, focus turns to next week's Markit M'fing PMI & CPI (Monday) as well as Danareksa Consumer Confidence (no fixed date).

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