Bank Indonesia Cuts Intervention, EUR/IDR Sees Downward Pressure

Bank Indonesia has reduced its spot foreign exchange intervention to 30% as USD/IDR approached the 18,000 mark. This move aims to manage rupiah volatility under external pressures.

The reduction in direct support for the currency pair means market forces now play a larger role in short-term price action. The central bank continues to draw from its reserves, but this intervention only partially moderates broader fluctuations driven by high oil prices and elevated U.S. yields.

According to technical analysis, EUR/IDR is likely to remain confined within a typical volatility band of Rp20,265 to Rp20,469 over the next two to three trading days. The current market structure suggests a high probability of continued downward pressure and a low probability of a sustained upward move.