IDR’s higher yields and a healthy balance of payments point to gradual rupiah appreciation. Analysts at Credit Suisse expect USD/IDR ranges of 14,000-14,300 in the next six months.

The central bank would allow appreciation up to 13,900

“If the Fed remains in the ‘transitory’ camp and US yields remain low, we think Indonesia’s higher yields, along with its record exports and trade surplus point to gradual rupiah appreciation towards 14,000.”

“We expect USD/IDR ranges of 14,000-14,300 in the next six months.”

“On balance, we think BI still prefers a slightly stronger rupiah, and we think the central bank would allow appreciation up to 13,900.”