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USD/IDR Spot Sub 14700, YTD Lows Within Sight

IDR

The rupiah rally is extending. USD/IDR spot is now printing sub 14700m -0.90% for the session. This brings previous YTD lows from mid-April into focus at 14645. This continues the sharp correction lower in the pair that started not long after yesterdays open.

  • Earlier we had news around palm oil export ratios, which didn't appear bullish for IDR at face value, although frozen quotas will be released steadily over the next 9 months.
  • Onshore equities have continued to rally, after a quiet start, the JCI is up around 0.80% at this stage. The index is above its 200-day MA (6929.73), last around 6963.65, which is highs back to early Dec last year.
  • This is likely seeing some positive spill over to IDR, particularly as offshore investors continue to purchase local equities.

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