Home›Forex›EM Currencies›Rupiah outlook firms on softer US payrolls and wider t…

Rupiah outlook firms on softer US payrolls and wider trade surplus

USD/IDR last closed at 17,875, with OCBC expecting any USD pullback to be modest unless US long-end yields and Brent fall further.

Reported · Written up by our desk · EM Currencies

OCBC expects the Indonesian rupiah to get near term relief from softer US payroll data and a wider Indonesia trade surplus, while policymakers continue to emphasize IDR stability, according to FXStreet.

The bank noted the trade surplus improvement may be partly driven by weaker than expected imports, and warned that elevated long-end US Treasury yields and high Brent prices keep the external backdrop challenging for the currency.

FXStreet also cited OCBC commentary that Bank Indonesia said its increased use of derivatives does not reduce the intensity of its FX stabilization efforts, and that Indonesia’s Ministry of Finance highlighted coordination with BI and maintaining SBN attractiveness.

OCBC said USD/IDR last closed at 17,875, with bullish momentum showing signs of moderation and scope for retracement, but only limited USD/IDR improvement unless US yields and oil move clearly lower.

Latest closeBrent $102.70 ▲0.4%

More like this

Sources