USD/IDR: Rupiah to trade better when the Fed concludes its hiking cycle – ANZ
|A weaker external balance and a sharp shrinkage in its yield premium over the USD have weakened the appeal of the Rupiah as a carry currency. Economists at ANZ Bank analyze USD/IDR outlook.
BI has been proactive in supporting the Rupiah
BI has been proactive in supporting the Rupiah. The latest move is the introduction of a new instrument (SRBI) to replace reverse repos and the ‘Operation Twist’, which provides some support to IDR but may divert investor interest from IndoGBs.
We expect the Rupiah to trade better when the Fed concludes its hiking cycle, with yields and USD peaking.
USD/IDR – Dec 23 15,100 Mar 24 14,800 Jun 24 14,600 Sep 24 14,400 Dec 24 14,200 Mar 25 14,000 Jun 25 14,000 Sep 25 14,000 Dec 25 14,000
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