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USD/IDR: A drop to 14,925 should not be ruled out – UOB

A decline to the 14,925 region appears in the pipeline ahead of some stabilization in USD/IDR, notes Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

“We highlighted last Monday that ‘the sharp and rapid drop in USD/IDR has room to extend’. We added, ‘in view of the deeply oversold conditions, a sustained drop below the major support at 14,095 is unlikely’. USD/IDR dropped to a low of 14,945 before rebounding to end the week at 14,990 (-1.06%).”

“While conditions remain oversold, the weakness in USD/IDR has not stabilized. This week, barring a break above 15,230, USD/IDR could drop to 14,925 before stabilization is likely.”

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