While speaking to Reuters on Thursday, Indonesian President Joko Widodo expressed his displeasure with the recent appreciation in the Indonesian rupiah.
Widodo said that the rupiah strengthening too quickly may upset the exporters.
The rupiah jawboning by the Indonesian President seems to have capped the ongoing rally in the local currency, as USD/IDR attempts recovery from a 23-month low of 16,320.
Responding to the comments from Widodo, the Bank Indonesia’s (BI) Deputy Governor said that rupiah strengthens on improving fundamentals and that the BI is not seeing the need to intervene.
“Stronger rupiah will not harm exporters,” he added.
At the press time, the cross reverses most losses and trades at 13,655 levels. The rupiah benefits from the gains in its Asian peers as the greenback remains under pressure across the board after the US-China phase one deal was finally signed and delivered on Wednesday.
USD/IDR Technical levels to watch
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