USD/IDR Extends Recovery From Six-Week Lows

USD/IDR bounced off a six-week low Tuesday and has extended gains today, as the greenback remains in demand. The rate last deals +50 at 13,980.

• The gov't sold IDR30tn of T-Bills and bonds Tuesday, missing the IDR35tn target.
• Indonesia moved to facilitate its Covid-19 vaccination scheme by making immunisation mandatory for its citizens and by allowing the private sector to offer jabs. The Jakarta Post cited WHO as warning that making inoculation compulsory could backfire by fuelling vaccine scepticism.
• A return onto the IDR14,000 handle would give bulls a green light for targeting Feb 5 high/50-DMA at IDR14,048/14,051. Meanwhile, the initial bearish target is located at IDR13,873, yesterday's low. A break here would clear the way to Jan 4 cycle low of IDR13,865.
• Bank Indonesia are set to deliver their monetary policy decision on Thursday, with 21 out of 26 economists surveyed by BBG looking for a 25bp cut to the benchmark interest rate.
• Later in the week, focus turns to Indonesia's Q4 BoP current account balance.