Halister News

(Bloomberg) -- USD/IDR may remain in 13,000-13,500 range in short-term even if Indonesia CPI extends its decline as it may not spur Bank Indonesia to cut rates further at its next meeting, Bloomberg strategist David Finnerty writes.

• Data will show April CPI rose 3.81% according to median est. of economists in Bloomberg survey; data due later today
• Bank Indonesia has a 2016 inflation target of 4% +/- 1%
• Central bank may leave rates unchanged while it focuses on strengthening its monetary operations framework given that it will change its monetary policy to focus on the 7-day reverse repo rate later this year
• Dovish-sounding Fed last week has helped support IDR and USD/IDR continues to consolidate under 50-DMA at 13,212
• 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.