USD/IDR: BI will continue to defend the 15,000 level – TDS
|USD/IDR trades below the 15,000 mark. Strategists at TD Securities believe that Bank Indonesia (BI) will defend this level.
A number of factors offer support to the rupiah
“Indonesia's terms of trade have looked increasingly attractive over recent months, offering support to its current account position and the IDR. News that China has pledged to increase palm oil imports from Indonesia is another factor that will help on this front.”
“We think BI will continue to defend the USD/IDR 15,000 level, which will act as a strong line in the sand.”
“Relatively higher real policy rates than other countries in Asia also offers the IDR more protection and we also see a strong chance that BI hikes this month, with the Bank shifting its stance towards a less accommodative one.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.