Three Charts Show Emerging Positives for Indonesian Rupiah
- Twelve-month volatility is lower than one-month reading
- Economists in latest forecasts predict second-half gains
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Indonesia’s rupiah has been one of the biggest losers in Asian currencies from the coronavirus sell-off in risk assets -- but there are signs the currency is set to strengthen later this year.
A gauge of one-month volatility has climbed above the 12-month indicator, indicating that uncertainty is likely to ease over the longer term. At the same time, while spreads on non-deliverable forwards have risen, they have done so less than in previous sell-offs. Thirdly, the latest forecasts from analysts show they are expecting rupiah gains in the second half of the year.