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IDR: Rupiah Advances To Multi-Week Highs After Expected BI Rate Decision

IDR

The rupiah posts gains during the ongoing Bank Indonesia briefing, albeit it should be noted that the downtick in spot USD/IDR occurred in sync with a move in the BBDXY Index. Spot USD/IDR last deals -78 figs at 16,102, hitting its lowest point since late May. 1-Month NDF trade -56 figs at 16.119, approaching support from the 100-DMA (16,090), which limited losses last week.

  • Bank Indonesia kept the BI Rate unchanged at 6.25%, in line with expectations. The central bank said that it now sees a higher chance of a Fed rate cut in November and still sees room to cut rates in 4Q2024. It expects inflation to stay within the +1.5%-3.5% Y/Y target range in 2024 and 2025.
  • The central bank maintained its commitment to conduct triple interventions in spot, DNDF and government bond markets if needed.

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