USD/IDR, traditionally a high-beta EM FX pair, has been remarkably stable. Analysts at Credit Suisse expect USD/IDR to remain stable within a 14,200-14,500 range.

Demand for coal, gas and nickel to continue rising amid supply concerns

“Assuming that the prices for coal, LNG and nickel remain elevated amid Russia sanctions uncertainty, Indonesia’s nominal exports stand to gain as long as the country’s overall production throughput and export volumes remain steady.”

“We think the potential gain in export values points to stability for the rupiah, offsetting the effects of geopolitical tensions and Fed tightening on the currency.” 

“We expect USD/IDR to remain stable or fall within a 14,200-14,500 range.”