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Jakarta Restrictions Weigh On Rupiah

DOLLAR-IDR

Despite kicking off on a softer footing, due to yesterday's broad-based risk-on flows, spot USD/IDR has pushed higher after Jakarta Governor Anies Baswedan announced the return of tighter coronavirus restrictions in the capital. The new rules will take effect on Monday and were announced yesterday afternoon, with the Governor warning that without stricter social distancing rules Jakarta could run out of hospital beds for coronavirus patients by Sep 17. The decision stoked concerns over Indonesia's economic recovery.

  • The rate sits +41 pips at IDR14,840 and bulls look for a break above Aug 18 high of IDR14,875 before setting their sights on the IDR15,000 mark. Bears eye the 50-DMA at IDR14,607 for initial support and a break here would expose Aug 31 low/200-DMA at IDR14,505/14,487.
  • Nothing of note left on Indonesia's economic docket this week, focus turns to next week's trade data & BI MonPol decision.

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