USD/IDR Rebounds to Pre-Rate Hike Level, USD/JPY to Blame

        0433 GMT [Dow Jones] USD/IDR rebounds to 12,145--its Tuesday closing level--as a new 7-year high in USD/JPY spurs broad demand for USD/Asia currency pairs. The Indonesia rupiah was expected to rally after the central bank announced a surprise 25 basis point hike in its base interest rate to counter inflationary effects of the government's fuel price increase. Indonesia's currency started the day stronger at 12,085 but quickly surrendered its 0.5% gain versus the U.S. dollar. But the rupiah is still outperforming its peers such as the Malaysia ringgit and other regional currencies, which are weaker versus the U.S. dollar. If USD/IDR closes Wednesday above 12,190, the daily Bollinger uptrend channel will be reactivated, increasing the odds that the rupiah will weaken further against the greenback. (ewen.chew@wsj.com)
        (END) Dow Jones Newswires

        November 18, 2014 23:33 ET (04:33 GMT)

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