USD/IDR to trade slightly lower over the coming months – ING

The Indonesian Rupiah in February lost some of the gains it made in January. Economists at ING expect the USD/IDR pair to move gradually lower over the coming months.

IDR could lag regional peers

“Bank Indonesia (BI) Governor Perry Warjiyo, declared victory against inflation, opting to keep rates untouched at the February meeting despite headline inflation staying well-above target. The end of the BI rate hike cycle means the IDR will be leaning heavily on the trade surplus for support.” 

“We expect the IDR to recover slightly given expectations for the trade balance to remain in surplus, but the end of the BI rate hike cycle means the IDR could lag regional peers.”      

“USD/IDR – 1M 14,900.00 3M 14,600.00 6M 14,450.00 12M 14,350.00”