- USD/IDR tracks the US dollar strength amid risk-off
- Upbeat Fitch report on Indonesia underpins the rupiah.
- Coronavirus stats and US PPI eyed in the day ahead.
USD/IDR is of the daily highs but remains strongly bid near 14,450 levels, mainly helped by the persistent strength in the US dollar across its main competitors.
The risk-off market profile induced by growing US coronavirus cases and the resultant economic concerns continue to underpin the sentiment around the safe haven, the US dollar.
Meanwhile, the latest Fitch report stated that Indonesia's policy credibility is likely to ease the deficit monetization risks. The report rescued the IDR bulls and lift the local currency off the lows at 14,470 vs. the greenback.
Additional points from the report
Central bank financing of Indonesia’s budget deficits may help govt overcome shock from pandemic, but carries well-established risks.
Central bank financing of Indonesia’s budget deficits could raise uncertainty about Indonesia’s policy approach over medium term.
Expect Indonesia’s general government deficit to reach 6.5% of gdp in 2020, up from 2.2% in 2019.
The focus now shifts towards the sentiment on the global markets, virus stats and US PPI data for near-term trading opportunities.
USD/IDR technical levels to consider
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