The Indonesian rupiah stays firmer following a positive close to the month of July. In the coming months, economists at ING expect IDR to enjoy a mild appreciation as covid surge mitigates.
IDR moves sideways in July as country battles covid
“The IDR tracked regional weakness for most of July before steadying to close out the month on some positive trends on the COVID-19 front with new daily infections slowing slightly.”
“Bank Indonesia (BI) kept policy rates unchanged at the 22 July meeting with Governor Warjiyo vowing support for both the economy and the currency, suggesting that any adjustments to the policy rate would likely be on hold for some time.”
“We expect the IDR to enjoy a slight appreciation bias as anxiety over the recent COVID-19 surge dissipates. However, the currency remains susceptible to a reversal should sentiment change quickly.”