EUR/IDR Outlook: Slightly positive, but likely to move sideways as the rate is above its recent average and near recent highs without a clear driving force.
Key drivers:
• The European Central Bank has maintained a stable interest rate environment, which provides some support for the euro against the Indonesian rupiah.
• Oil prices are currently above average, which can strengthen the euro, as rising energy costs often affect the overall economic outlook within Europe.
• Indonesia's recent interest rate cut by Bank Indonesia aimed at stimulating growth is potentially undermining the rupiah and may encourage further depreciation.
Range: The EUR/IDR is expected to drift within its recent range, maintaining stability but lacking significant movement in either direction.
What could change it:
• A substantial rebound in European economic indicators could strengthen the euro significantly against the rupiah.
• Increased domestic instability in Indonesia, such as further protests or political turmoil, could exacerbate the weakness of the rupiah.
