Indonesia Ramps Up Efforts To Contain Delta Variant

Spot USD/IDR has continued to creep higher after officials confirmed that they are preparing to implement a set of strict curbs, in an attempt to stop the spread of Covid-19 across the country. The rate last operates +45 figs at IDR14,530, hitting best levels in two months.

• Alexander Ginting, a member of Indonesia's Covid-19 task force, confirmed the impending tightening of restrictions across the country, after the Straits Times ran a report suggesting that the country will declare a hard lockdown by Saturday. Ginting described the upcoming measures as comprehensive, noting that people living in high-risk areas will be asked to stay at home. The package of new containment measures is being finalised and should be formally announced soon. Elsewhere, Pres Widodo named Maritime & Investment Min Panjaitan as the coordinator of new emergency restrictions in Java and Bali.
• Indonesian Markit M'fing PMI will be published tomorrow, with the latest CPI report due a few hours later.
• Bulls look for a jump above Apr 23 high of IDR14,550, before taking aim at IDR14,635, which represents Apr 13 high & key near-term resistance. Bears need a pullback under Jun 28 low of IDR14,415, before targeting the 50-DMA at IDR14,373.
• USD/IDR 1-month NDF last +3 figs at IDR14,638. Topside focus falls on Jun 29 high of IDR14,666 and a break here would open up Apr 13 high of IDR14,736. Conversely, losses past Jun 18 low of IDR14,438 would give bears some reprieve.