Halister News

(Bloomberg) -- USD/IDR could stay in 13,000-13,500 range if CPI is little changed as that may encourage Bank Indonesia to hold rates as it continues to assess impact of recent cuts, Bloomberg strategist David Finnerty writes.

• March CPI likely up 4.50% y/y from 4.42% in Feb., according to median est. of economists in Bloomberg survey
  • Core CPI seen little changed at 3.58% from 3.59% in Feb.
  • Date due tomorrow
• Bank Indonesia’s 2016 inflation target is 3%-5%
• Two weeks ago, central bank lowered benchmark interest rate by 25 bps for third time this year to aid domestic growth
  • Intense inflationary pressure has eased, with CPI falling and stabilizing from above 7% in May-Aug.
• Weaker-than-expected U.S. payrolls and wage data tomorrow may aid rupiah strength short-term and see FX pair test 13,000
• USD/IDR now up 0.1% at 13,280
• NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.