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USD/IDR slips for fourth day as foreign investment lifts rupiah
USD/IDR traded near 17,990 in Asian hours, with rupiah gains tied to a 27.4% year-over-year surge in Q2 foreign direct investment.
USD/IDR stayed under pressure for a fourth straight session, trading around 17,990 during Asian hours on Friday as the Indonesian rupiah strengthened on resilient investor sentiment.
FXStreet links the move to a 27.4% year-over-year jump in Q2 foreign direct investment, which helped support the currency even as Indonesia works to stabilize food prices amid El Niño supply risks.
The article also points to offsetting forces for the US dollar. It says potential support for the greenback comes from developments around conflict in the Middle East, including reports that Iran has instructed Yemen’s Houthi militia to be ready to close the Red Sea oil route if the United States strikes Iranian power infrastructure.
At the same time, softer-than-expected US inflation and a decline in producer prices have made traders trim expectations for near-term Federal Reserve rate hikes. The piece adds that initial jobless claims dropped to a two-month low, leaving markets largely excluding a Fed move this month while expectations remain split over September.