S&P Affirms Indonesia Ratings, Supports Rupiah but USD Caps Gains
S&P’s affirmation of Indonesia’s BBB/A-2 ratings with stable outlook is mildly supportive for the IDR, though gains remain limited against the US dollar.
OCBC strategists Sim Moh Siong and Christopher Wong commented on the Indonesian Rupiah (IDR) outlook following S&P’s decision to affirm Indonesia’s BBB/A-2 sovereign credit ratings with a stable outlook. According to the analysts, the move removes the immediate risk of a downgrade and offers mild support for the currency.
However, they note that the IDR remains constrained against the US dollar, suggesting that the positive rating signal alone is not enough to drive sustained appreciation. The market continues to weigh global dollar strength and other external factors.
Source: FXStreet Forex News