USD/IDR Uptrend Continues, Softer Risk Appetite Aids Dollar Demand

Spot USD/IDR has continued to push higher, the pair last near 15530, off around 0.3% versus yesterday's closing levels. The 1 month NDF sits lower though relative to Wednesday highs, tracking at a similar level (15533).

• For spot we are through all key EMAs, with upside focus likely to rest on the 15600 level. A weaker global equity trend since the start of the year has weighed on the rupiah, with 5yr CDS ticking up to 76bps, against late 2023 lows sub 70bps.
• Local equities remain in a strong positive uptrend, but offshore inflows have been modest so far this week.
• The government sold 21.75trln rupiah of local bonds at the country's first debt auction for the year, but this was below the 25trln targeted. This was held yesterday when it also sold just over $2bn of dollar bonds.
• The government also expects non oil and gas export growth this year of between 2.5-4%. The government is currently negotiating 12 trade agreements and is looking to expand into new markets (BBG).