USD/IDR Price News: Indonesian rupiah clocks fresh six-week highs on Warijyo’s comments

The Indonesian rupiah extends the recent winning streak against the US dollar in Wednesday’s Asian trading, with USD/IDR now losing 0.10% to trade at 15,365.

The spot reached a new six-week low of 15,355 after the rupiah picked up bids on Bank Indonesia (BI) Governor Perry Warijyo’s upbeat remarks on the exchange rate value.

Warijyo said the central bank continues to believe rupiah heading towards 15,000 a dollar by year-end.

Additional comments

April inflation m/m seen at 0.18%, YoY seen at 2.78%.

Relatively high demand of forex from companies has put pressure on rupiah in recent days.

BI bought 2.3 trillion rupiah of govt bonds in Tuesday’s auction.

May bid in govt's green shoe option auction on Wednesday.

Expects govt to sell around 425 trillion rupiah in bond market for the rest of the year.

Market should see that govt has offered high yields in Tuesday’s auction.

Bond yields will trend down.

Expects commercial banks to meet new level of secondary reserve requirement ratio by may 4.

Size of "quantitative easing" so far at 503.8 trillion rupiah.

Further, bearish momentum in the cross can be also attributed to the broad-based US dollar weakness, as markets remain cautious and resort to rebalancing ahead of the key US data and FOMC decision due later today.

USD/IDR technical levels to watch