USD/IDR Price News: Indonesian rupiah sits at four-week lows on mixed Indonesia's CPI
|Indonesia’s annual inflation rate softened slightly in June, according to the latest data published by Statistics Indonesia on Wednesday.
Indonesian June’s inflation rate dropped to 1.96% on the year, compared with May’s 2.19% and 1.84% expectations but remained between the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at 2.26% vs. 2.65% previous and 2.46% expected.
Meanwhile, the monthly inflation reading for June came in at +0.18% vs. +0.02% expected and +0.07% 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 trades close to four-week highs of 14,322 on the mixed Indonesian CPI data. The Indonesian rupiah remains undermined by the spike in the new coronavirus cases seen in the country recently.
At the press time, the spot trades 0.95% higher at 14,315.
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