- USD/IDR advances as risk-off strengthens the haven demand for the dollar.
- Oil drop and growing doubts about US’ preparedness to re-open the economy weigh on risk assets.
The dollar is better bid this Monday morning in Asia and is pushing the USD/IDR pair higher.
The currency pair is currently trading at 15,534, representing a 0.30% gain on the day, having faced rejection at the descending 5-day average at 15,628 earlier today.
The American dollar is again being treated as a have currency, as evidenced by the 0.15% uptick in the dollar index, which measures greenback’s value against its major rivals. The US stock futures came under pressure early Asia as the uptick in the coronavirus related deaths in the US over the weekend raised doubts over America’s readiness to re-open the economy. Additionally, the oil price slide added to the risk-off tone.
The futures on the S&P 500, however, have trimmed losses in the last few minutes and are now reporting marginal losses. The People’s Bank of China’s decision to cut rates likely put a floor under the US stock futures, capping the upside in the US dollar.
The IDR, however, may remain under pressure on fears of social unrest in Indonesia ahead of the Ramadan fasting month. The government is making preparations to ensure that the coronavirus-induced jobless rate “will not result in social and security conflicts”, the Office’s undersecretary for politics, law, defense, and human rights, Jaleswari Pramodhawardani, said in a statement on Thursday, according to TheStar.
Technical levels
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