- USD/IDR takes the bids near a 12-week high.
- Buyers cheer concerns about the absence of coronavirus cases, criticism of the handling of Jakarta’s floods.
- The Indonesian government announced close to $750 million budget to ward off the COVID-19 risk, wider fiscal deficit expected.
- US GDP, coronavirus headlines in the spotlight.
USD/IDR rise to the highest since early December 2019 while taking the bids to 14,080, up 0.81%, during early Thursday. The pair recently benefited from the global doubts over how Indonesian can have no coronavirus cases despite being near to China. Also contributing to the pair’s upside is flooding in Jakarta and broad risk-off.
Although none of the 132 Indonesian lab tests came out as positive for coronavirus (COVID-19), Sydney Morning Herald joins the diplomatic community in Indonesia to doubt the government’s positive front. The reasons cited were the lack of amenities as well as political pressure. Further, pushes the voters to blame the Joko Widodo-led government for their inefficiency in managing the frequent natural calamity.
On Wednesday, Indonesian Finance Minister Sri Mulyani Indrawati accepted the fact that the government expects a wider fiscal deficit after announcing a multi-billion-dollar stimulus to tame the coronavirus risk.
Elsewhere, the market’s risk-tone remains heavy due to the widespread contagion of the Chinese virus outside Beijing and propels the pair. While portraying the same, the US 10-year treasury yields remain weak around 1.309% whereas S&P 500 Futures lose more than 1.30% to 3,068. Moreover, Indonesia’s IDX Composite dip 2.10% to 5,570 by the press time.
Looking forward, the second readings of the US GDP, January month Durable Goods Orders and coronavirus headlines can direct near-term moves of the pair.
Technical Analysis
A sustained break of the six-month-old falling trend line, at 13,890 now, USD/IDR prices are rising towards November 2019 high near 14,230.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Further losses appear on the cards
AUD/USD experienced a sharp sell-off, breaking below the 0.6500 support level to hit multi-day lows and approach the November bottom near the 0.6430 zone, driven by renewed strength in the Greenback.
EUR/USD: Gains remain capped by 1.0600
The renewed strong demand for the US Dollar, combined with political concerns in France, weighed on the European currency, pushing EUR/USD below the 1.0500 support level once again on Monday.
Gold hovers around $2,640 without directional strength
Gold starts the new week on the back foot and trades below $2,650. The renewed US Dollar strength and the recovery seen in the US Treasury bond yields don't allow the pair to stage a rebound despite the risk-averse market atmosphere.
MicroStrategy, MARA add to their holdings amid Bitcoin's quest for new all-time high
MicroStrategy continued its aggressive Bitcoin purchase on Monday after it announced the acquisition of 15,400 BTC at an average purchasing price of $95,976 per token.
Trump warns BRICS over Dollar rival plans
Donald Trump, the incoming U.S. President, has issued a strong warning to BRICS nations over their plans to challenge the dominance of the U.S. dollar in global trade.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.