USD/IDR: Heading back towards 16,500 again – ANZ

USD/IDR is off its high after hitting 16,625 in late March. Economists at ANZ Bank think the Indonesian rupiah will remain vulnerable.

Key quotes

“The Indonesian government has extended the partial lockdown in some cities (including Jakarta) to 22 May.” 

“We see IDR remaining vulnerable to COVID-19 developments globally and in Indonesia.”

“A re-emergence of risk aversion is likely as the global economic impact of COVID-19 becomes more apparent, which could see USD/IDR head back towards 16,500 again.”