USD/IDR Price News: Rupiah rises to $14,350 as Indonesia FinMin signals narrower fiscal deficit

• USD/IDR prints three-day downtrend, recently pressured around intraday low.
• Indonesia FinMin Indrawati expects fiscal deficit to shrink to 4.0% of GDP in 2022.
• US dollar weakness and optimism in Asia-Pacific markets also favor sellers ahead of Thursday’s key US inflation data.

USD/IDR remains depressed near the intraday low of $14,356 while portraying a three-day downtrend heading into Wednesday’s European session.

In doing so, the Indonesian Rupiah (IDR) pair cheers upbeat comments from Finance Minister (FinMin) Sri Mulyani Indrawati while also cheering the broad US dollar weakness amid a quiet session.

“Indonesia's fiscal deficit is expected to narrow further this year to near 4% of its gross domestic product, compared with an initial forecast of a 4.85% gap, its finance minister told an investment forum on Wednesday,” said Reuters.

The news also quotes Indonesia FinMin Indrawati while mentioning that she expected tax laws passed by parliament late last year to provide more revenue for the state coffers, allowing Indonesia to "restore fiscal space" and prepare for any potential shocks. It’s worth noting that Reuters also said, “Last year's fiscal deficit was 4.65% of GDP, much smaller than the government's expected 5.7% deficit.”

That said, US Dollar Index (DXY) drops 0.08% intraday around 95.55 at the latest as the US Treasury yields retreated from the multi-day high during early Asia, downbeat of late. That said, the US 10-year Treasury yields jumped to the highest levels since July 2019 the previous day before recently easing to 1.945%. The bond coupon eased even after San Francisco Fed President Mary Daly favored the March rate hike in her latest speech. The policymaker additionally mentioned, “Fed can't be overly aggressive on rate increases,” while saying, “US inflation could get worse before it gets better.”

Moving on, comments from Fed Cleveland President Loretta J. Mester may offer intermediate directions ahead of Thursday’s US CPI data.

Technical analysis

Multiple failures to stay beyond $14,400 direct USD/IDR bears towards the 200-DMA level of $14,331.