USD/IDR rose sharply by 2.7% over a span of 4 weeks. The pair could revisit 14,900 near-term on USD strength, economists at TD Securities report.

BI to intervene more actively to cap a further rise beyond 15,000

“Given the hawkish Fed rhetoric and softer risk sentiment, which may prop up the USD further, USD/IDR may test 14,900 – the high in September 2020. However, we think a peak in the USD is likely to come some time this quarter.”

“USD/IDR rarely stays above the 15,000 level for a prolonged period based on a 10-year horizon window, and we anticipate BI to intervene more actively to cap a further rise in USD/IDR beyond 15,000.”