USD/IDR Trims Initial Losses, 1-Month NDF Push Higher

Spot USD/IDR has pared the bulk of its opening losses and last changes hands at IDR15,238, down 25 figs on the day. A further advance past yesterday's high of IDR15,278 would please bulls, opening up the 61.8% retracement of the 2020 decline at IDR15,574. The 100-DMA provides the initial layer of support at IDR14,843.

• USD/IDR 1-month NDF last +37 figs at IDR15,244. Topside focus falls on Sep 28 high of IDR15,354, while bears keep an eye on the 100-DMA, which kicks in at IDR14,865.
• Foreign investors sold a net $40.89mn in local equities Thursday, while the Jakarta Comp was heavy, extending losses this morning. The index sits ~0.8% below neutral levels.
• Palm oil futures have advanced in early Kuala Lumpur trade, adding ~2.3% thus far. The aggregate BBG Commodity Index is barely changed.
• Bank Indonesia's executive director for monetary management said it will try to reduce reliance on the USD by allowing transactions in domestic NDFs in other currencies and finalising more local-currency settlement agreements. The official said rupiah weakness should be temporary, after which the exchange rate will return to its fundamental value.
• Indonesia's parliament passed into law the 2023 state budget which seeks to reduce the deficit to 2.84% of GDP from 3.9% projected for this year. FinMin Indrawati warned lawmakers that rising global interest rates and soaring inflation mean that financing the budget will become more challenging.