Indonesian Rupiah Set for Longest Rally in Eight Years as Prabowo Sought to Allay Debt Fears

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Indonesian Rupiah Set for Longest Rally in Eight Years as Prabowo Sought to Allay Debt Fears
Federal ReserveFiscal OutlookPrabowo Subianto
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(Bloomberg) -- Indonesia’s moves to ease concern over the nation’s fiscal outlook and growing bets for more Federal Reserve interest-rate cuts sent the...

-- Indonesia’s moves to ease concern over the nation’s fiscal outlook and growing bets for more Federal Reserve interest-rate cuts sent the rupiah on its best rally in almost eight years.The rupiah rose as much as 0.4% to 16,135 per dollar on Friday, set for an eighth day of gains, which would be the longest rally since September 2016.

Still, the rally may not last should US rate cuts fail to materialize while higher global food prices and the threat of new US trade tariffs also pose risks, Supaat said. He forecasts the currency at 16,600 per dollar at end-September. “Investors may not be convinced of this turnaround,” said Alex Loo, a macro strategist at TD in Singapore, who expects the currency to fall to 16,350 by quarter-end. “The uncertainty regarding the fiscal plans will weigh on investors’ mind in the months ahead.”At SpaceX, Elon Musk’s Own Brand of Cancel Culture Is ThrivingThese two Canadian banks are climbing, but still have so much more room to run.

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