USD/IDR: High commodity price environment to favour the pupiah in until year-end – SocGen

The Indonesian rupiah is set to remain on a solid foot until the end of the year. However, economists at Société Générale expect IDR to move back lower in 2023.

Bullish IDR trend to reverse next year

“We expect IDR to remain resilient and continue to ride the commodity story until the end of this year.” 

“China’s growth rebound in 2H should be beneficial to the IDR.” 

“We expect IDR’s strength to gradually unwind from 2023 onwards, as strong domestic demand should drive the current account back into a deficit and global commodity prices start normalising lower.”