The Indonesian rupiah was on the defensive again early but depreciation pressure was capped by the end of July. Economists at ING think that the IDR can enjoy gains once Bank Indonesia (BI) hikes at the end of the third quarter.

IDR will likely move sideways

“The IDR will likely move sideways as depreciation pressure is offset to some extent by their substantial trade surplus.”

“IDR can enjoy a rally once BI finally decides to hike policy rates at the end of Q3.”