USD/IDR: Next target for the Rupiah bears will be March 2020 high of 16,625 – SocGen

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The Indonesian Rupiah is the worst-performing currency in Asia this month. Economists at Société Générale analyze IDR outlook. 

BI to stand pat at 5.75%

We expect Bank Indonesia to stand pat at 5.75%. Headline inflation has slowed to 2.3% (BI target 2-4%), but the central bank has abstained from policy easing due to IDR weakness. Our house view is that the next rate move will be a cut in 1Q24 or later.

The Rupiah has weakened to a level last seen during the peak pandemic as USD/IDR breached the December 2022 high of 15,770 and next target for the Rupiah bears will be March 2020 high of 16,625.

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• Source: https://www.fxstreet.com/news/usd-idr-next-target-for-the-rupiah-bears-will-be-march-2020-high-of-16-625-socgen-202310190906