S&P support offset by Rupiah headwinds – Commerzbank

S&P support offset by Rupiah headwinds – Commerzbank

Commerzbank’s Dr. Henry Hao and Moses Lim note S&P Global Ratings affirmed Indonesia’s BBB sovereign rating with a stable outlook, citing fiscal discipline and adherence to the 3% deficit ceiling. Nonetheless, S&P views recent fiscal and external deterioration as temporary but flags higher bond yields and weaker Indonesian Rupiah (IDR) as headwinds. USD/IDR rose toward […]

Supported by ratings yet constrained against US Dollar – OCBC

Supported by ratings yet constrained against US Dollar – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong note that S&P’s affirmation of Indonesia’s BBB/A-2 ratings with a stable outlook is mildly supportive for the Indonesian Rupiah (IDR) by removing immediate downgrade risk. However, they caution that IDR gains may be limited without clearer fiscal consolidation and better capital flows, while the recent rebound in […]