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Rupiah steadies as S&P affirms Indonesia ratings, but upside may be capped
OCBC points to affirmed BBB/A-2 ratings with a stable outlook as supportive, but warns clearer fiscal consolidation and better capital flows are needed to sustain gains.
OCBC strategists Sim Moh Siong and Christopher Wong said S&P’s affirmation of Indonesia’s BBB/A-2 ratings with a stable outlook is mildly supportive for the Indonesian rupiah, because it reduces immediate downgrade risk.
They cautioned that any upside for USD/IDR may remain limited unless Indonesia sees clearer fiscal consolidation and improved capital flows. They also flagged that a recent rebound in oil prices could pressure the currency by lifting import costs, fueling inflation and increasing subsidy burdens.
In FX pricing, USD/IDR last closed around 18,105, with daily-chart momentum described as mildly bullish but near overbought conditions. The analysts cited resistance at 18,190 and support at 18,000 and 17,910 (21-day moving average).