The USD/IDR pair dropped a few centimeters after opening on a bullish gap, remaining in positive territory and trading around 17,880 during Asian hours on Thursday. The currency pair falls as the Indonesian rupiah (IDR) finds support ahead of Bank Indonesia’s (BI) policy meeting on Thursday.
Traders are actively pricing in the possibility of a 25 basis point enhance in interest rates to 5.75%, based on last week’s momentum when BI saw a surprise 25 basis point enhance. The unexpected move was primarily aimed at defending the rupee and easing rising inflation pressure as the country’s annual inflation rate rose to 3.08% in May from 2.42% in April, approaching the upper end of the central bank’s target range of 1.5% to 3.5%.
The USD/IDR pair maintains losses as the US Dollar (USD) declines as safe-haven demand softens following a BBC report overdue Wednesday indicating that the White House has confirmed that US President Donald Trump and Iranian President Masoud Pezeshkian have signed an initial memorandum of understanding to end the US-Israeli war on Iran. This decisive executive action follows the electronic signing of the initial framework by US Vice President J.D. Vance and Speaker of the Iranian Parliament Mohammad Bagher Ghalibaf earlier this week.
However, the US dollar may rebound amid the increasing likelihood of interest rate increases by the Federal Reserve (Fed) later this year. The Fed’s June Summary of Economic Projections showed that half of FOMC members expect at least one interest rate enhance this year. Despite the economic disruption related to the Iran conflict, stable labor market data and persistent core inflation measures continue to create tightening pressure.
Price in US dollars for the last 7 days
The table below shows the percentage change of the United States Dollar (USD) against the major currencies listed over the last 7 days. The US dollar was the weakest against the Australian dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | IDR | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.16% | 0.42% | 0.03% | 1.14% | -0.44% | 0.05% | 0.00% | |
| EUR | -0.16% | 0.27% | -0.11% | 0.97% | -0.71% | -0.06% | -2.04% | |
| GBP | -0.42% | -0.27% | -0.38% | 0.71% | -0.98% | -0.37% | 0.00% | |
| JPY | -0.03% | 0.11% | 0.38% | 1.11% | -0.55% | 0.16% | 0.03% | |
| BOOR | -1.14% | -0.97% | -0.71% | -1.11% | -1.63% | -0.93% | -1.27% | |
| AUD | 0.44% | 0.71% | 0.98% | 0.55% | 1.63% | 0.63% | 1.27% | |
| NZD | -0.05% | 0.06% | 0.37% | -0.16% | 0.93% | -0.63% | -1.03% | |
| IDR | 0.00% | 2.04% | 0.00% | -0.03% | 1.27% | -1.27% | 1.03% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
