The EUR/IDR market is currently range-bound, holding steady near recent lows. Key drivers include a widening interest rate differential between the European Central Bank and Bank Indonesia, as the ECB maintains a flexible interest rate policy while BI aims to stabilize the rupiah through interventions. The euro benefits from positive economic growth projections in the Eurozone, with expectations of continued stability as Bulgaria adopts the euro.
In the near term, the EUR/IDR is expected to fluctuate within a stable trading range, reflecting its recent performance just above the three-month average. Upside risks include stronger-than-anticipated economic growth in the Eurozone, while downside risks stem from further depreciation of the rupiah due to global economic volatility or internal pressures within Indonesia. Additionally, oil price movements, currently resting at near-term highs, may also influence the euro's valuation indirectly.