19 Aug 2015
USD/IDR see higher by year-end – UOB
FXStreet (Edinburgh) - Market analysts at UOB Group expect the Indonesian rupiah to depreciate further in the upcoming months.
Key Quotes
“Bank Indonesia (BI) kept its policy rate and the overnight deposit facility (FASBI) rate unchanged at 7.50% and 5.50% respectively in line with consensus and our expectation”.
“Elevated inflation and higher USD/IDR appear to be holding back further interest rate cuts in Indonesia in the short-term even though the weak domestic macroeconomic data maintains pressure for monetary easing”.
“USD/IDR rose to a fresh 17-year high of 13,917 last week in reaction to the CNY devaluation”.
“While USD/CNY appears to be settling into more stability, we continue to expect upward pressure on USD/IDR due to Indonesia’s current account deficits, weak commodity outlook and the impending interest rate normalisation in the US”.
“We have revised our USD/IDR forecast higher to 13,900 at end-3Q15 and 14,000 at end-4Q15, from 13,500 and 13,600 respectively”.
Key Quotes
“Bank Indonesia (BI) kept its policy rate and the overnight deposit facility (FASBI) rate unchanged at 7.50% and 5.50% respectively in line with consensus and our expectation”.
“Elevated inflation and higher USD/IDR appear to be holding back further interest rate cuts in Indonesia in the short-term even though the weak domestic macroeconomic data maintains pressure for monetary easing”.
“USD/IDR rose to a fresh 17-year high of 13,917 last week in reaction to the CNY devaluation”.
“While USD/CNY appears to be settling into more stability, we continue to expect upward pressure on USD/IDR due to Indonesia’s current account deficits, weak commodity outlook and the impending interest rate normalisation in the US”.
“We have revised our USD/IDR forecast higher to 13,900 at end-3Q15 and 14,000 at end-4Q15, from 13,500 and 13,600 respectively”.