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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
IDR
USD/IDR sits sharply lwoer in the early part of Friday dealing. Spot is under 15700, last near 15690, around 0.50% stronger in IDR terms. part of this reflects catch up with USD post yesterday's onshore spot close, although the 1 month NDF is also stronger by around 0.20% versus end Thursday levels in NY. We were last near 15700 for the 1 month NDF.
- Broader risk moves are certainly helping IDR. The chart below plots spot against the US 10yr real yield. This week's correction lower has aided rupiah sentiment, with an eventual Fed easing cycle (even with push back this week on a March kick off) seen as a key IDR positive by the authorities as we progress through 2024.
- Local equities are modestly higher, tracking recent ranges, while global equities are up strongly.
- Bi intervention efforts, highlighted earlier in the week has also potentially encouraged some exiting out of long USD/IDR positions.
- Locally, we did have resignation from local cabinet yesterday, with Senior Law Minister Mahfud MD resigning as part of his vice presidential bid.
- President Jokowi has stated the Indonesian cabinet continues to work normally.
Fig 1: USD/IDR Versus US Real 10yr Yield
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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