USD/IDR Rebound Continues, Equity Outflows Present, Bond Inflows Slow

Since onshore markets returned at the start of the week (after being close Thurs/Fri last week), spot USD/IDR has tracked higher. Spot is back towards earlier May highs, last 16155/60, down a further 0.40% in IDR terms so far today.

• Like elsewhere in the region, cross asset moves are a headwind for the currency, particularly in terms of US yields. Recent peak and troughs in USD/IDR have lined up with shifts in US yield momentum.
• Local equities are also softening into month end, while offshore investors have net sellers of local equities in May to date (-$700.9mn). Net bond inflows have been in excess of $900mn, but momentum has slowed through the second half of May.
• For spot USD/IDR, late April highs rest at 16288, but a move above 16200 may draw the reaction of the authorities from an intervention standpoint.
• The local data calendar remains empty until next Monday when the May PMI and CPI prints are due.