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Onshore Rupiah Firms, Fuel Price Hike Announcement Inbound

IDR

The rupiah outperforms in emerging Asia, cementing its position as this week's regional leader.

  • Spot USD/IDR has shed 9 figs and last deals at IDR14,814. The 100-DMA provides the initial bearish target at IDR14,694, while bulls look for a rebound above Aug 23/4 highs of IDR14,918/14,939.
  • USD/IDR 1-month NDF last +29 figs at IDR14,815. Topside focus falls on Aug 22/5 highs of IDR14,953/14,990. Bears look for losses towards Aug 12 low of IDR14,654.
  • Global funds sold a net $44.4mn in Indonesian equities on Thursday, the first net daily outflow since Aug 3. The Jakarta Comp Index has slipped this morning, extending yesterday's losses.
  • Palm oil futures snapped a four-day winning streak Thursday after Indonesia announced a two-month extension to its export levy waiver.
  • The government was set to submit a report on fuel price hike to President Widodo today, which means Jokowi may announce his decision on the matter imminently. The details will matter for Indonesia's inflation outlook.

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