USD-IDR to remain on an uptrend

A BI policy rate cut next week would surprise FX markets as well. A kneejerkmove higher is expected in USD-IDR in response to any policy easing. 

Standard Charterd notes as follows on Friday:

• More generally, we expect USD-IDR to remain on an uptrend (with an initial technical target of 13,662), with limited resistance from BI, as long as the move higher in USD-IDR is gradual.
  
  
• We think BI's willingness and ability to stem further IDR depreciation is limited.Indeed, recent comments from BI appear to welcome IDR weakness, as long as such moves are gradual
  
  
• We maintain short- and medium-term Neutral FX weightings on the IDR. We have a Neutral outlook on IDR bonds.