BI Intervening To Curb Rupiah Fall, Cites External & Domestic Factors

Spot USD/IDR is near 15755 in recent dealings, firmer for the session in USD terms. The 1 month USD/IDR NDF is also ticking higher, last near 15780, close to 0.35% weaker in IDR terms versus end NY levels from Wednesday.

• For the 1 month NDF this is above Tuesday session highs, which we capped at 15750. Headlines crossed a little while ago from a BI official that the central bank has been in the market to ensure FX supply/demand balance (RTRS).
• The official stated that external factors, as well as the domestic political situation were behind the rupiah's weakness. The external factor is weighed heavily by the rebound in US yields.
• A short while later BBG headlines ran that several ministers are considering resigning, including Finance Minister Sri Mulyani Indrawati. This is reportedly over current President Jokowi's support for Prabowo Subianto at the upcoming election (Feb 14), see this link.
• For USD/IDR 15800 remains the likely logical target, although BI may lean more heavily against depreciation pressures on a break above this level. Oct highs from last year in the pair came close to 16000.