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USD/IDR sold off sharply overnight.......>

DOLLAR-IDR
DOLLAR-IDR: USD/IDR sold off sharply overnight after Nanang Hendarsah, exec
director for monetary management at Bank Indonesia, said that the rupiah will be
allowed to strengthen amid Indonesia's strong economic outlook. IDR was
comfortably the best performer in Asia, with USD/IDR printing a 21-month low.
- Some analysts see Hendarsah's comments as a shift in BI's stance, which used
to focus on stabilising the currency. Earlier this week, the Bank stepped in to
protect IDR against pressure from the risk-off reaction to Iran's attack on
U.S.-Iraqi military bases.
- Hendarsah later confirmed his earlier comments to RTRS, adding that BI is not
targeting any specific IDR level. Separately, BI Governor Warjiyo noted that
USD/IDR may fall as much as to IDR13,750. 
- USD/IDR trades -107 at 13,748, below the level mentioned by Warjiyo. The Mar
27 2018 low of IDR13,700 provides the initial bearish target, followed by
IDR13,695 which represents the 76.4% retracement of the Nov 9 2017 - Oct 9 2018
rally.

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