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USD/IDR to move gradually higher towards 14,600 by end-2022 – MUFG

In January, the Indonesian rupiah weakened against the US dollar from 14,257 to 14,366. Economists at MUFG Bank forecast the USD/IDR pair at 14,400 by end-March and at 14,600 by year-end. 

Bank Indonesia (BI) to hike policy rates after inflation heads higher in 2022

“Inflation is also set to rise higher, to 2.6% in 2022 after 1.6% in 2021. This will bring inflation to within the BI inflation target range of 2-4% and allow the BI to shift attention from growth/inflation towards maintaining financial stability.” 

“We believe that BI will hike its policy rates twice in H2-2022, bringing the 7D RR to 4.00% by the end of the year.”

“We forecast USD/IDR at 14,400 at end-March, and heading higher to 14,600 by the end of the year.”

 

Germany Markit Services PMI in line with expectations (52.2) in January

Germany Markit Services PMI in line with expectations (52.2) in January
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US Dollar Index looks supported around 96.00 ahead of key data

The greenback manages to regain some composure and attempt a move past the 96.00 barrier when tracked by the US Dollar Index (DXY) on Thursday. US Dol
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