S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Commerzbank’s FX analysts, including Charlie Lay and Moses Lim, note that USD/IDR slipped slightly but stayed below the key 18,000 level as softer global Oil prices and stronger Indonesia Q2 GDP supported the Rupiah. They highlight that clearer Bank Indonesia leadership and confidence in BI’s independence should aid IDR over the coming weeks, though several structural and geopolitical risks may limit further appreciation.
Rupiah supported but upside constrained
“Q2 GDP rose more than expected by 5.3% yoy (Bloomberg consensus: 5.1%) vs 5.6% in Q1. Growth was supported by resilient domestic demand, particularly stronger investment activity, while household consumption and government spending remained firm. In H1, the economy expanded 5.5%, slightly below the government’s full-year target range of 5.6-6.0%.”
“On inflation, July CPI surprised to the downside, rising 2.9% yoy (Bloomberg consensus: 3.2%) vs 3.3% in June. This was the softest reading in three months and moved closer to the midpoint of BI’s 1.5-3.5% target range.”
“Separately, local media reported that President Prabowo is preparing to submit a shortlist of candidates to replace Perry Warjiyo as BI Governor. Acting Governor Destry Damayanti is widely viewed as the frontrunner. She is also regarded by markets as the candidate most likely to preserve policy continuity. Parliament is expected to review the nominations after returning from recess on 14 August. The approval process is expected to take one to two weeks.”
“In FX, USD/IDR dipped 0.1% to 17,918 yesterday but remained below the key 18,000 psychological level. The pair closed at its lowest level since 23 July, supported by softer global crude oil prices and improved sentiment following the strong Q2 GDP print.”
“Greater clarity regarding the next BI Governor appointment, alongside restored confidence in the BI’s independence, should support IDR in the coming weeks. However, gains may be capped by several headwinds, including the risk of an MSCI downgrade to frontier market status, concerns that the fiscal deficit could breach the statutory 3% of GDP ceiling, and ongoing geopolitical uncertainty.”
