USD/IDR Outlook:
The USD/IDR rate is slightly positive, but likely to move sideways as it trades above the recent average and near recent highs. This position indicates a stable environment without strong pressure from either side.
Key drivers:
• Rate gap: The US Federal Reserve's tighter monetary policies continue to support the USD, while Bank Indonesia's interventions have struggled to stabilize the IDR.
• Risk/commodities: Global economic pressures and ongoing trade concerns draw investment towards the USD, impacting the demand for the IDR.
• Political instability: Recent protests and fiscal uncertainties in Indonesia have led to unease among investors regarding the IDR’s stability.
Range:
Expect movement within the recent range as the USD/IDR maintains stability, likely holding around current levels without major deviations.
What could change it:
• Upside risk: A stronger than expected US labor market report could further boost the USD.
• Downside risk: Increased volatility due to further political unrest or adverse economic news from Indonesia could pressure the IDR.