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USD/IDR Uptrend Persists

IDR
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USD/IDR spot continues to drift higher, last near 15340, not too far from mid August highs at 15358. A move above this level, could see March highs around 15450 targeted. The 20-day EMA trend is rising, last near 15259.

  • On the data front, the August consumer confidence index ticked higher to 125.2, but remains sub May highs of 128.30. Next week sees August trade data out on Friday.
  • Local lawmakers have told BI to take 'bold but measured steps' to ease borrowing costs, while being mindful of Fed rate hikes (see this link for more details). The emphasis onshore is clearly aimed at efforts to boost the growth outlook.
  • BI's next policy announcement is on Sep 21 and it continues to emphasize financial stability and may be reluctant to turn more dovish with Fed rate cuts not yet on the agenda, particularly with USD/IDR trending higher.
  • Encouragingly, BI received got $277mn in FX deposits yesterday, although the majority was parked in a 1 month tenor. Still, this is the highest placement since the scheme was launched in March. Further take up of this scheme should give BI more ammunition to defend the currency.
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USD/IDR spot continues to drift higher, last near 15340, not too far from mid August highs at 15358. A move above this level, could see March highs around 15450 targeted. The 20-day EMA trend is rising, last near 15259.

  • On the data front, the August consumer confidence index ticked higher to 125.2, but remains sub May highs of 128.30. Next week sees August trade data out on Friday.
  • Local lawmakers have told BI to take 'bold but measured steps' to ease borrowing costs, while being mindful of Fed rate hikes (see this link for more details). The emphasis onshore is clearly aimed at efforts to boost the growth outlook.
  • BI's next policy announcement is on Sep 21 and it continues to emphasize financial stability and may be reluctant to turn more dovish with Fed rate cuts not yet on the agenda, particularly with USD/IDR trending higher.
  • Encouragingly, BI received got $277mn in FX deposits yesterday, although the majority was parked in a 1 month tenor. Still, this is the highest placement since the scheme was launched in March. Further take up of this scheme should give BI more ammunition to defend the currency.