USD/IDR climbs to near 15,400 despite the potential market intervention by Bank Indonesia

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USDIDR أخبار

Macroeconomics,Indonesia,Riskaversion

USD/IDR extends its winning streak for the third successive day, trading around 15,400.00 during the early European hours on Thursday.

USD/IDR rises due to risk aversion amid rising Middle-East tensions. The US Dollar receives support from the decreasing odds of a Fed’s bumper rate cut in November. Bank Indonesia might have intervened in the FX market to support the Rupiah by ensuring the balance of supply and demand. The Indonesian Rupiah lost around 1% against the US Dollar as the rising geopolitical tensions have dampened the risk appetite.

In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest. What are the key assets to track to understand risk sentiment dynamics? Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook.

 

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