USD/IDR seesaws around $14,210, following an uptick to $14,250, during early Friday morning. In doing so, the Indonesian rupiah (IDR) pair prints daily gains for the first time in four days while bouncing off the monthly low marked two days before, also the lowest levels since October.
The corrective pullback move could be linked to the Bank Indonesia (BI) Governor Perry Warjiyo’s comments, shared by Reuters at the latest.
“Indonesian bonds will have to rise by 50 basis points (bps) next year to match an expected increase of 50 to 75 bps in U.S. Treasury yields as the United States tightens monetary policy,” said BI’s Warjiyo.
The Indonesia central bank boss also predicted the increase in inflation would start in the third quarter of 2022, per the news. However, the BI leader reiterated the bank's pledge to keep Indonesian interest rates low until inflation started heating up.
On a different page, the Christmas Eve holiday in multiple Western markets and a light calendar restrict the USD/IDR moves. However, upbeat US Treasury yields at the last, backed by the firmer US Core PCE Price Index, not to forget Durable Goods Orders and Michigan Consumer Sentiment Index, favored the pair buyers. Alternatively, positive updates over the covid strain’s cure and studies taming fears of hospitalizations keep the market’s sentiment mildly positive and guard the USD/IDR pair’s immediate upside.
Unless providing a daily close beyond the $14,283-87 region comprising the 100-DMA and 50-DMA, USD/IDR bears remain hopeful. Alternatively, May’s low around $14,090 lures the pair sellers for now.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.