USD/IDR: BI will continue to defend the 15,000 level – TDS
USD/IDR trades below the 15,000 mark. Strategists at TD Securities believe that Bank Indonesia (BI) will defend this level.
A number of factors offer support to the rupiah
“Indonesia's terms of trade have looked increasingly attractive over recent months, offering support to its current account position and the IDR. News that China has pledged to increase palm oil imports from Indonesia is another factor that will help on this front.”
“We think BI will continue to defend the USD/IDR 15,000 level, which will act as a strong line in the sand.”
“Relatively higher real policy rates than other countries in Asia also offers the IDR more protection and we also see a strong chance that BI hikes this month, with the Bank shifting its stance towards a less accommodative one.”
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FXStreet Insights Team
FXStreet
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