Indonesian Rupiah holds losses following Consumer Confidence data

USD/IDR strengthens as Indonesia's June consumer confidence dropped to 117.8 from May's 120.9, weakening the Rupiah.
Traders await new Fed Chairman Warsh’s first Meeting Minutes for vital clues on future US interest rates.
Safe-haven demand from renewed geopolitical tensions supports the US Dollar.

Akhtar Faruqui FXStreet

USD/IDR gains ground after registering modest losses in the previous day, trading around 18,050 during the Asian hours on Wednesday. The pair holds ground as the Indonesian Rupiah (IDR) remains subdued following the release of the latest Consumer Survey conducted by Bank Indonesia (BI), indicating an optimistic (index >100) Consumer Confidence Index (CCI) of 117.8 in June, against the 120.9 in May.

Traders’ attention is focused on Wednesday's release of the US Federal Reserve (Fed) Meeting Minutes, the first under newly appointed Chairman Kevin Warsh, for crucial clues regarding the future path of US interest rates.

The US Dollar (USD) receives support from safe-haven demand amid renewing geopolitical tensions. US airstrikes against Iran came in response to Iranian attacks on commercial vessels in the crucial Strait of Hormuz, including a Qatari LNG carrier and a Saudi oil tanker.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned that the era of bullying and extortion has ended and insisted that Iran will not fold under pressure. Meanwhile, the country's top joint military command denounced the attacks on southern Iran as blatant aggression, promising a crushing military response. Defiant over the strategic waterway, Tehran reaffirmed that it will block any US interference regarding the control and management of the Strait of Hormuz.

Economic Indicator

Consumer Confidence

The Consumer Survey conducted by Bank Indonesia reflects the change in consumer confidence in economic conditions compared with one month earlier. The report includes Current Economic Condition Index (CECI) and Consumer Expectation Index (CEI) to paint an accurate picture of consumer sentiment in the country.

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