USD/IDR: Rupiah hangs near 4-month lows as Bank Indonesia stands pat

Dhwani Mehta FXStreet

At its May monetary policy meeting on Thursday, Indonesia’s central bank, Bank Indonesia (BI), left its 7-day reverse repo rate unchanged at 6.00%, meeting the market expectations.

The latest Reuters poll of 20 analysts published on Tuesday showed that the Indonesian central bank, Bank Indonesia’s (BI), was seen steering the key interest rate on a steady course for the sixth straight meeting, in the wake of escalating US-China trade tensions that weighs down on the Indonesian

On the status-quo decision by the Indonesian central bank, the Indonesian Rupiah (IDR) remained unfazed and kept its range near fresh four-month lows reached against its American counterpart, with the USD/IDR cross hovering a few pips below the multi-month tops of 14,470 levels.

“Since a peak in mid-April - when unofficial vote counts showed President Joko Widodo securing a second term - the rupiah has dropped about 3 percent against the dollar, due to souring foreign investors sentiment for risky assets and a cyclical rise in dollar demand in Indonesia for offshore payments,” as cited by Reuters.

Meanwhile, the technical set up has turned in the favor of the bears, “USD/IDR’s relative strength index reporting overbought conditions for the first time since October”, as explained by FXStreet’s Analyst, Omkar Godbole.

USD/IDR Technical Levels

USD/IDR

Overview
Today last price	14464
Today Daily Change	31.9500
Today Daily Change %	0.22
Today daily open	14432

Trends
Daily SMA20	14242.3775
Daily SMA50	14209.741
Daily SMA100	14169.325
Daily SMA200	14478.5198

Levels
Previous Daily High	14548
Previous Daily Low	14402
Previous Weekly High	14505
Previous Weekly Low	14211
Previous Monthly High	14718
Previous Monthly Low	13974.25
Daily Fibonacci 38.2%	14492.228
Daily Fibonacci 61.8%	14457.772
Daily Pivot Point S1	14373.3333
Daily Pivot Point S2	14314.6667
Daily Pivot Point S3	14227.3333
Daily Pivot Point R1	14519.3333
Daily Pivot Point R2	14606.6667
Daily Pivot Point R3	14665.3333

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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