USD/IDR Just Above YTD Lows

Spot USD/IDR sits slightly above session lows. The pair last at 14680/85, after gapping lower at open towards 14650. We still sit around 0.15% below closing levels from yesterday (just above 14700). We are also just a touch above previous YTD lows (around 14645). A break below this level would see the market targeting round figure support at 14600. Note that lows in the pair from early June last year came in just ahead of 14400.

• Late yesterday it was reported that exporters placed $156.5mn into FX term deposits with the central bank. This is the largest amount since the policy was introduced a few months ago (see this link). The majority was placed at the 1-month tenor, as has been the norm.
• Local equities remain just off recent highs, tracking around flat for today. Cumulative gains were around 3% through Wed/Thur sessions. Offshore inflows continued yesterday but at a more moderate pace (+$27mn).
• The wash up of the changes announced around palm oil exports yesterday looks to be more supply, with the government pledging to keep global supply from being disrupted in the next 3 months. Higher export earnings could boost onshore FX reserves held with BI.