USD/IDR has dropped amid broader USD.....>

DOLLAR-IDR: USD/IDR has dropped amid broader USD underperformance, last trades

-60 pips at IDR15,386. We've heard some comments from BI Governor Warjiyo, the

day after Bank Indonesia conducted its first direct purchase of government

bonds. Warjiyo noted that the central bank sees April CPI at +2.78% Y/Y, as of

the 4th week of the month, and expects inflation to remain subdued due to the

impact of lockdown measures on demand. In addition, the central bank sees no

pressures to inflation through 2021. Re: the rupiah, Warjiyo reiterated that BI

sees USD/IDR weakening to IDR15,000 by year-end, adding that the rupiah is

undervalued and its recent weakening stemmed from seasonal factors.

- Worth noting that Pres Jokowi spoke on Tuesday, pointing to reported deficits

in staple food in some regions. Ministers later outlined a slew of measures

taken by the gov't to ensure smooth distribution of staple food.

- The 50-DMA at IDR 15,185 provides the initial bearish target and a break here

would open the 50% retracement of the YtD range at IDR15,101. Bulls need a

clearance of Apr 16 peak at IDR15,754 before taking aim at the IDR16,000 mark.

- The local data docket is virtually empty during the remainder of this week.