USD/IDR: Rupiah to enjoy gains supported by its resilient current account balance – MUFG

The Indonesian Rupiah registered gains against the US Dollar in March. Economists at MUFG Bank see some gains from the IDR if commodity prices improve from current levels.

BI likely to maintain its monetary policy for the rest of the year 

“The current account may stay insulated by H2-2023 if commodity prices improve and export demand from Asia and China increase. Besides, the recovery in tourism is likely to help maintain a relatively stable services balance.” 

“The economy is expected to receive net portfolio investment inflows as yield differentials between the US and Indonesia are unlikely to narrow further. This comes as BI is likely to maintain its monetary policy for the rest of the year.”

“We forecast USD/IDR at 15,000 by the end of Q2 and 14,400 by Q1-2024.”