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Rupiah firms near two-month high as dollar softens, BI leadership clears
Analysts at OCBC cite weak US payrolls and Bank Indonesia succession clarity after Destry Damayanti was nominated as sole governor candidate, while they flag CPI, oil prices and the next BI meeting as key risks.
OCBC analysts Sim Moh Siong and Christopher Wong said the Indonesian rupiah strengthened to near a two-month high, helped by a softer US dollar following weak US payrolls and increased clarity around Bank Indonesia leadership.
They pointed to President Prabowo’s nomination of Destry Damayanti as the sole candidate to head Bank Indonesia, saying the appointment removes near-term uncertainty after Perry Warjiyo’s departure and adds expectations for policy continuity, including a focus on currency stability.
On price levels, the OCBC view is bearish for USD/IDR with downside bias, highlighting support zones at 17680 to 17580 and resistance around 17840 to 17950 to 17970.
The analysts added that upcoming US CPI, oil prices, and the next BI meeting are the key risks for the rupiah, alongside technical signals including a bearish daily setup as RSI nears oversold conditions.