USD/IDR Price News: Indonesian rupiah remains offered on mixed CPI
|Indonesia’s annual inflation rate decelerated further in August, according to the latest data published by Statistics Indonesia on Tuesday.
Indonesian August’s inflation rate dropped to 1.32% on the year, compared with July’s 1.54% and 1.40% expectations and remained much below the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at 2.03% vs. 2.07% previous and 2.00% expected.
Meanwhile, the monthly inflation reading for August came in at -0.05% vs. +0.01% expected and -0.1% last.
About Indonesia’s CPI
The Inflation index released by the Statistics Indonesia is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of the Indonesian Rupiah is dragged down by inflation. The CPI is used as a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as positive (or bullish) for the Rupiah, while a low reading is seen as negative (or Bearish).
USD/IDR reaction
The USD/IDR cross is off the daily highs but trades with mild gains on the mixed Indonesian CPI data. The Indonesian rupiah remains undermined by the worrisome coronavirus situation and weak fundamentals.
At the press time, the spot trades 0.22% higher at 14,590, having hit a daily high at 14,615.
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.