USD/IDR Range Bound Ahead Of BI

USD/IDR is down around 0.15% so far today, last just under 15180. The pair remains well within recent ranges ahead of the BI decision later today. Recent selling interest has been evident on moves above 15200. The pair remains wedged between key EMA levels.

• The BI is widely expected to remain on hold today given recent BI commentary (see our full preview here).
• Such an outcome may weigh on IDR at the margins, given the more hawkish turn around the Fed outlook since the start of the month. BI will likely guard against a sharp weakening in IDR though, given it continues to value the currency as undervalued (we have the 50 and 100 day EMAs siting higher at 15255 and near 15280 respectively).
• It could also state that fresh hikes could come into play further into 2023 if conditions warrant it from a financial stability standpoint.
• Elsewhere local property developer Waskita is seeking a delay on Feb 23 bonds which are due next week. There are broader concerns around debt in this segment of the Indonesian economy, which is likely to remain a watch point for the market.
• The JCI is lagging a better tone elsewhere in the region evident today, tracking 0.2% lower at this stage.