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Tumbles Despite BI Interventions

IDR

Spot USD/IDR trades through its 100-DMA/Dec 23 high at IDR14,229/14,232, as the rupiah's rout continues despite Bank Indonesia's efforts to defend domestic currency.

  • BI initially offered 1-month DNDF at IDR14,295 through brokers and then offered 1-month and 3-month DNDFs via auctions at IDR14,295 and IDR14,491 respectively. It then said it is conducting triple interventions to ensure rupiah stability.
  • The spot last trades +155 at IDR14,238, with bulls looking for a continued rally towards the 50% retracement of the Oct 14, 2020 - Jan 4, 2021 sell-off at IDR14,309.
  • On the news front, it is worth noting that per a BBG report, Indonesia's biggest lenders expressed scepticism re: ability of lower interest rates and looser borrowing rules to immediately boost loan growth.

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