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USD/IDR Sits Off Monday Highs, Jokowi States FX Risks Manageable

IDR

USD/IDR sits comfortably off Monday session highs. The pair was last near 15870/75. Session lows today came in at 15855. Highs in the pair yesterday were at 15962, before BI intervention curbed USD gains. The 1 month NDF is sitting at 15885, close to NY closing levels from Monday, so spot gains for the rupiah look to be largely playing catch up to USD weakness post yesterday's onshore close.

  • For USD/IDR spot we are still some distance from the 20-day EMA which sits back near 15690.
  • Earlier President Jokowi stated that the impact of the weaker IDR trend is manageable from an inflation standpoint. He added higher US rates and capital outflows are additional risks (see this BBG link).
  • Whilst Jokowi sounded relatively relaxed about the currency, it is likely to remain a focus point for the authorities in the near term. This may mean the 16000 level is somewhat of a line in the sand, at least in the near term.

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