USD/IDR Price News: Rupiah refreshes 21-month high, ignores Indonesia inflation, budget updates


  • USD/IDR prints four-day uptrend to print the highest level since October 2020.
  • Indonesia Inflation came in firmer for June, FinMin Sri Mulyani Indrawati tries to defend the currency buyers.
  • US dollar cheers broad risk-off mood ahead of ISM Manufacturing PMI for June.

USD/IDR refreshes a two-year high of around $14,988 as risk-aversion underpins the US dollar buying during Friday’s Asian session. In doing so, the Indonesia Rupiah (IDR) pair fails to cheer upbeat inflation data and economic updates from home, conveyed recently by Finance Minister (FinMin) Sri Mulyani Indrawati.

Indonesia's Inflation for June rose to 4.35% YoY versus 4.17% forecast and 3.55% prior. However, the Core Inflation eased below 2.72% market consensus to 2.63% YoY. That said, the Inflation print rose to 0.61% MoM compared to 0.44% expected and 0.40% prior.

Following the inflation report, Indonesia FinMin Indrawati crossed wires, via Reuters, while conveying hopes of a lesser fiscal deficit in 2022 due to strong revenue. “Indonesia will likely book a 2022 fiscal deficit of 732.2 trillion rupiah, or 3.92% of gross domestic product, smaller than the government's previous forecast of 4.5% of GDP, due to strong revenue forecasts,” said the policymaker.

Reuters adds details while mentioning, “Sri Mulyani Indrawati told a hearing with parliament's budget committee this meant the government would cut debt issuance to 757.6 trillion rupiah ($50.64 billion), from 943.7 trillion rupiah in her previous target.” Indonesia FinMin Indrawati, who is also Bank Indonesia Governor, also mentioned that Indonesia's central bank is in no rush to hike interest rates even as June consumer prices rose at the fastest pace in five years, per Reuters.

Elsewhere, the US Dollar Index (DXY) picks up bids to reverse the previous day’s pullback from a two-week top as market sentiment worsens over growth fears. That said, the US Dollar Index (DXY) reversed from a 12-day high to snap a two-day uptrend by closing Thursday’s trading around 104.75, near 104.80 by the press time.

On Thursday, the downbeat US personal spending and softer prints of the Fed’s preferred inflation gauge raised concerns over the health of the world’s largest economy and drowned the US dollar. The greenback’s previous retreat could also be linked to the downbeat US Treasury yields as the benchmark 10-year bond coupons dropped below 3.0%, before recovering to 3.01% at the closing, to portray around 50 basis points (bps) of a fall from June’s peak.

While portraying the mood, the S&P 500 Futures drop 0.80% to mark a five-day downtrend whereas the US 10-year Treasury yields reverse early Asian session rebound to 2.967%, refreshing the three-week low.

Given the risk-aversion wave and the US dollar strength, the USD/IDR may extend the latest run-up. However, the US ISM Manufacturing PMI for June, expected 55.0 versus 56.1 prior, as well as risk catalysts, for fresh impulse.

Technical analysis

Multiple hurdles marked during 2020 challenge the USD/IDR bulls targeting the $15,000 round figure. However, the sellers have the least scope of entry unless breaking the previous resistance line from mid-May, around $14,925 by the press time.

Additional impotant levels

Overview
Today last price 104.96
Today Daily Change 0.27
Today Daily Change % 0.26%
Today daily open 104.69
 
Trends
Daily SMA20 104.04
Daily SMA50 103.36
Daily SMA100 100.87
Daily SMA200 98.09
 
Levels
Previous Daily High 105.54
Previous Daily Low 104.65
Previous Weekly High 104.95
Previous Weekly Low 103.86
Previous Monthly High 105.79
Previous Monthly Low 101.64
Daily Fibonacci 38.2% 104.99
Daily Fibonacci 61.8% 105.2
Daily Pivot Point S1 104.38
Daily Pivot Point S2 104.07
Daily Pivot Point S3 103.49
Daily Pivot Point R1 105.27
Daily Pivot Point R2 105.85
Daily Pivot Point R3 106.16

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD remains choppy below 1.0200 on dismal EU GDP, Fed minutes eyed

EUR/USD remains choppy below 1.0200 on dismal EU GDP, Fed minutes eyed

EUR/USD is extending choppy trading below 1.0200 amid a downgrade to the Eurozone Q2 GDP and risk-aversion. The US dollar pauses its renewed upside ahead of Fed minutes. The euro remains vulnerable to recession fears and the gas crisis. 

EUR/USD News

GBP/USD recaptures 1.2100 as USD rebound fizzles

GBP/USD recaptures 1.2100 as USD rebound fizzles

GBP/USD is trading above 1.2100 in the European session on Wednesday as investors assess the implications of surging UK inflation on the BOE's next policy move. The US dollar fails to hold the upside amid souring risk sentiment ahead of US data and Fed minutes. 

GBP/USD News

Gold struggles near one-week low, focus remains on FOMC minutes

Gold struggles near one-week low, focus remains on FOMC minutes

Gold turns lower for the third successive day amid the emergence of fresh USD buying. Hawkish Fed expectations, rising US bond yields continue to underpin the greenback. Recession fears could limit losses for the XAU/USD ahead of the key FOMC minutes.

Gold News

Solana price hints at a 50% upswing under these specific conditions

Solana price hints at a 50% upswing under these specific conditions

Solana price shows an interesting setup as it tries to overcome a stiff resistance level. The fifth attempt to overcome hurdles will likely be successful due to multiple bullish confluences. Solana price has been on a clear uptrend since producing the June 14 swing low at $25.76.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures