Bank Indonesia to keep rates on hold - Reuters poll; USD/IDR hits 4-month tops
According to the latest Reuters poll of 20 analysts, the Indonesian central bank, Bank Indonesia’s (BI), is seen steering the key interest rate on a steady course for the sixth straight meeting due this Thursday, in the wake of escalating US-China trade tensions that weighs down on the Indonesian Rupiah.
Key Findings:
“All 20 analysts in the poll forecast no change in Bank Indonesia’s (BI) 7-day reverse repurchase rate, which has been 6.00 percent since November.
Of nine poll respondents who gave a view on the year-end benchmark rate, seven said the benchmark will be lower than now while two predicted it would still be 6.00 percent.”
Meanwhile, USD/IDR now prints fresh four-month tops at 14,550, as the Indonesian Rupiah continues to lose ground amid escalating US-China trade war.
“Since a peak in mid-April - when unofficial vote counts showed President Joko Widodo securing a second term - the rupiah has dropped about 3 percent against the dollar, due to souring foreign investors sentiment for risky assets and a cyclical rise in dollar demand in Indonesia for offshore payments,” as cited by Reuters.
USD/IDR Technical Levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
