IDR Support Factors

Many people is wondering, how can IDR become so strong lately, at least YTD2016. Basically, there are six factors that affecting a currency: government intervention, inflation rate, interest rate, current account balance, government debt, and speculation. More details on the explanation is in here.

So for Indonesia case:

From the all factors above, in the short-term, IDR found its fundamental support. Unless there are deterioration from the above factors, we can expect a stabilize IDR movement (~Rp13,500/USD). From my calculation, IDR fair value is at Rp14,000–14,100/USD (by end of 2016).

— -end of post #37