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Rupiah Slides To Multi-Month Lows

IDR

Spot USD/IDR has caught a bid today and is testing resistance from Mar 9 cycle high as we type. It last changes hands +53 at IDR14,463, matching best levels since early Nov.

  • Indonesia will lower final income tax rates on construction services. Final income tax for individual & small firms will be cut to 1.75% from 2.00%, while the rate for medium and large businesses will be trimmed to 2.65% from 3.00%.
  • The Indonesian Palm Oil Association declared that palm oil reserves fell to 4.25mn tons in Jan from 4.87mn tons in Dec, while output shrank to 3.76mn tons from 4.04mn tons.
  • A clean break above IDR14,463 would prompt bulls to target the 23.6% retracement of the Mar 23, 2020 - Jan 4, 2021 low at IDR14,516. Bears look for a dip through the 200-DMA at IDR14,372 before taking aim at Mar 12 low of IDR14,340.
  • Energy & Mineral Resources Min Tasrif and Public Works & Housing Min Hadimuljono will attend parliamentary hearings today.
  • Tomorrow's monetary policy decision from Bank Indonesia is widely expected to be a placeholder, with all of the analysts taking part in the BBG survey expecting no change to the main policy rate.

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