USD/IDR: Stays above 14,100 amid fresh coronavirus concerns from Indonesia
- USD/IDR refrains to extend the previous day’s declines.
- No coronavirus case in Bali but two cases in Jakarta make authorities on the run.
- BI is not expected to defy global efforts to counter COVID-19 despite policymakers’ claim to a positive state.
With the recent updates on Indonesia’s “zero coronavirus (COVID-19)” claims, USD/IDR fails to extend the previous day’s declines. In doing so, the pair registers mild gains of 0.20% to 14,180 during early Thursday.
The UK’s Daily Mail recently cleared doubts about the Asian nation’s status concerning the deadly virus. While the Indonesian experts are right when they claim no COVID-19 cases in the party island Bali, there are two confirmed cases in the capital Jakarta that have gained major attention.
Following the results, medical professionals and politicians pushed the ruling party to do more and act swiftly while a case of half a million virus masks seized also gone viral.
Across the broad, global policymakers and central bankers are doing their best to tame the negative economic implications of the deadly disease.
The same seems to have renewed the risk-on amid the latest sessions. With this, the US 10-year treasury yields recover further to 1.013% whereas Indonesia’s IDEX Composite mark 0.74% gains to 5,692 by the press time.
It’s worth mentioning that the Bank Indonesia (BI) representatives stay ready to maintain rupiah and financial market stability. While citing this, Enrico Tanuwidjaja of UOB Group said, “Bank Indonesia (BI) and the Financial Services Authority (OJK) have announced measures to stabilize the Indonesian rupiah (following the stock market selloff) and to anticipate the downside risks to the domestic economy due to the COVID-19 outbreak”.
Technical Analysis
A bearish spinning top on the daily chart for Wednesday increases the odds for the further declines towards the sub-14,000 area.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
