Rupiah Holds Losses After BI's Stand-Pat Rate Decision

The rupiah has clung onto its earlier losses after Bank Indonesia kept its policy rate unchanged and it will focus on stabilising the exchange rate through interventions and "Operation Twist."

• The central bank maintained its GDP forecast (+4.5%-5.3% Y/Y) for this year but dropped a reference to "upward bias" amid slower growth investment and construction. Governor Warjiyo noted that the Fed is likely done with its tightening cycle, while the U.S. will likely reach a debt-ceiling deal.
• Spot USD/IDR closed +45 figs at IDR14,950 after gapping higher at the open. The initial topside target is provided by IDR14,962, which capped gains on May 19. Above there opens the 50-DMA at IDR14,988.
• USD/IDR 1-month NDF last seen +13 figs at IDR14,960. Should bulls manage to force their way through May 19 high of IDR14,995, they could take aim at Apr 19 high of IDR15,044.
• The on-hold decision matched the expectations of all economists surveyed by Bloomberg.