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Pair trend higher has no end in sight due to lack of USD supply

  • Corporate FX hedging takes its toll, Barclays estimate USD4-8bln next 6-12 months

  • Hedging a new development, significant amounts done in past 12 months

  • Structural current account deficit  tends to be poor in Q2 (Barclays) - weighing on IDR

  • Thin liquidity and one side nature of flows cannot be easily absorbed 

 

  • Market Data
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