Further upside seems in the pipeline for USD/IDR while above the 14,750 level, notes Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

“Last Monday (15 May, spot at 14,810), we indicated that ‘improving upward momentum is likely to lead to further USD/IDR strength to 14,930’. However, we held the view that ‘it is too early to expect a break of 14,980’.”

“Our view was not wrong as USD/IDR rose to 14,964 before ending the week at 14,920 (+1.19%). This week, as long as USD/IDR stays above 14,750, there is a chance for USD/IDR to rise further even though it might not be able to break clearly above the resistance at 14,980.”