4 Global Market Updates- 20 September, 2022
In this article, we have covered the highlights of global market news about the USD/IDR, USD/JPY, USD/CAD and AUD/USD.
USD/IDR Price News: Indonesian rupiah buyers struggle below $15,000 as BI and Fed rulings loom
During Tuesday’s Asian session, the USD/IDR pares intraday losses at $14,980, consolidating the two days’ losses that reached their biggest levels since late July. In doing so, the coupling between the US Federal Reserve (Fed) and the Bank Indonesia’s monetary policy meetings and the Indonesian rupiah (IDR) explains the market’s apprehension (BI).
The recent decline in the IDR may be related to the pessimistic remarks made by the international credit rating firm Fitch, which said that “profits of Indonesia’s contemporary food stores are anticipated to come under pressure from reduced consumption owing to increasing inflation.” The bulletin also said that the BI recorded much higher inflation in August 2022, coming in at 4.69% from 1.59% in August 2021 and 2.18% in January 2022.
In light of this, a Reuters poll indicates that Bank Indonesia will raise interest rates again by 25 basis points at its meeting on Thursday, continuing to move more cautiously than most of its peers in an effort to reduce inflation.
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