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USD/IDR Back To Late April Highs On Commodity Weakness/Higher US Real Yields


USD/IDR is back above 14900, last near 14920, around highs from late April. Indonesian markets returned today after yesterday's holiday, with the pair playing some catch up with higher USD/Asia levels. A break above 14920 may see the market target 14970, highs from early April and beyond that is 15000, round figure resistance.

  • Onshore equities are higher today, the JCI up 0.40%, but we remain fairly close to recent lows and unable to get back above 6700. Net equity inflows form offshore investors are close to flat for the week. We are also down in terms of bonds flow, but Wednesday saw a +$154.8mn in inflow.
  • Elsewhere, weaker palm oil prices will be weighing at the margin, while firmer US real yields is additional headwind. The real 10yr is back to +142bps, highs from the first half of March.
  • The local data calendar is empty until next Tuesday, when Q1 BoP figures print. Although the main focus will be on BI's rate decision, out on Thursday, although no change is epxpedted.

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