USD/IDR Price News: Indonesian rupiah rallies in sync with EM currencies
|- USD/IDR refreshes three-month lows below 14,200.
- Dollar offered into risk-on mood while EM currencies boosted.
- A minor corrective bounce on the cards ahead of US data?
USD/IDR holds the lower ground near three-month lows of 14,179 reached earlier in the Asian session, as the attention now turns towards US economic releases for fresh trading impetus.
The spot extends its bearish momentum into a fifth straight day on Wednesday, largely driven by a generalized weakness in the US dollar, as markets dumped the safe-haven greenback in search of higher yields.
The Asian stock markets are at three-month tops on optimism over a quicker global economic upturn, underpinning the bids for the Emerging Market (EM) currencies, which, in turn, is helping the Indonesian rupiah.
Further, the upbeat comments from the Bank Indonesia (BI) Governor Peter Warijyo also add to the upbeat tone seen around the local currency. Warijyo said that the central bank continues to see room for rupiah appreciation.
The ongoing optimism over the global economic recovery and the resultant risk-on rally in the equities emerged as the main driver for the recent rally in USD/IDR.
In the day ahead, the US ISM Services PMI and Factory Orders data will offer fresh incentives on the USD price-action while the risk sentiment on the global markets will continue to play out.
USD/IDR technical levels to watch
At the moment, the spot sheds 1.25% to 14,200, with the immediate downside seen at 14,095 (March lows). Should the bulls manage to defend the last, a bounce-back above 14,500 cannot be ruled out in the near-term.
USD/IDR additional levels
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