USD/IDR Price News: Rupiah regains $14,300 as Indonesia FinMin praises economic resilience

• USD/IDR reverses early Asian session losses, dropped the most in a week on Tuesday.
• Indonesia FinMin Sri Mulyani Indrawati shrugs off challenges to economy from Ukraine conflict.
• USD tracks softer yields ahead of Fed, receding covid woes in China also favors pair sellers.
• US Retail Sales, risk catalysts can entertain traders ahead of Fed’s verdict.

USD/IDR retreats to $14,309 during the early European morning on Wednesday, following the heaviest daily loss on Tuesday.

The Indonesia rupiah (IDR) pair’s latest losses could be linked to the comments from Indonesia’s Finance Minister (FinMin) Sri Mulyani Indrawati during a virtual seminar with Fitch Ratings, shared by Reuters. Also weighing on the USD/IDR prices could be softer USD ahead of the Federal Open Market Committee (FOMC).

“Indonesia's economy has remained resilient even as the war in Ukraine heightens financial market volatility and drives up commodity prices,” said Indonesia FinMin Mulyani Indrawati per Reuters. “The government would use this year's social protection budget, which amounts to 154.76 trillion rupiah ($10.81 billion), to protect people from an "extreme" rise in food prices,” adds the policymaker.

On the other hand, The US 10-year Treasury yields snap seven-day uptrend around the highest levels since June 2019, down 1.3 basis points (bps) to 2.147% at the latest, which in turn drags the US Dollar Index (DXY) to extend the previous day’s fall below 99.00 by the press time.

The US dollar’s weakness could be linked to the mixed US price and manufacturing data, as well as US inflation expectations, as signaled by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, which dropped from the second consecutive day after refreshing the record top.

Elsewhere, mixed comments over the Ukraine-Russia peace talks and softer covid daily infections from China also helped the Asian currency to remain firmer of late.

Moving on, Fed’s ability to balance the rate-hike and the US Retail Sales for February, expected to ease to 0.4% from 3.8% prior, will be important for fresh impulse. Further, headlines concerning Ukraine and China’s coronavirus updates will offer additional directions for the USD/IDR prices.

Technical analysis

Unless crossing the 21-DMA level near $14,352, USD/IDR bears are likely to keep reins. That said, December 2021 low of around $14,150 appears a tough nut to crack for bears.