USD/IDR: Rupiah to remain weak in the coming month – Mizuho

The Indonesian Rupiah depreciated slightly against the US Dollar in July. The IDR is forecast to remain weak in August, economists at Mizuho Bank report.

Not necessary for the central bank of Indonesia to start cutting its policy interest rate now

After evaluating the positive effect on the domestic economy and the negative effect on the foreign exchange market, the central bank of Indonesia is likely to maintain its policy interest rate at the existing level without cutting it for a while. 

On the other hand, the US could still raise its policy interest rate. Thus, the Indonesian Rupiah is forecast to remain weak against the US Dollar in the coming month.