USD/JPY

The yen retained hefty gains against other currencies on Wednesday, aided by safe-haven inflows after a slide in US consumer confidence to 10-month low stoked doubts about the pace of a global economic recovery. The data triggered concerns about the future of US consumer spending, the main hope for a sustainable economic recovery. The dollar traded at 90.22 yen on Wednesday, after felt nearly 1 percent against the yen on Tuesday. Meanwhile on Wednesday, the euro pared some losses made the previous day but remained under pressure after yesterday's German Ifo index of business sentiment dipped unexpectedly, while French household spending and Italian consumer confidence turned lower. Also, it was further hurt by a downgrade of Greece's four largest banks by Fitch, bringing back the country's woes back to the forefront.

Forecast:

The focus now shifts to Federal Reserve Chairman, who will testify before Congress on Wednesday and Thursday. Earlier this month, the Fed released his prepared remarks to be delivered before the very same US House Financial Services Committee, though the hearing never took place because of a sever snow storm. Besides that, investors will be looking for any comments on the Fed's decision late last week to raise its discount rate. Expected range: 89.85 - 90.85

USD/IDR

Rupiah opened slightly weaken on Wednesday at 9320 as US data related consumer confidence slid to a 10-month low. During the day, the pair was traded higher than Tuesday's range between 9313-9345. Besides that, the pair was also well supported by the month-end corporate demand. Market closed at 9343. In addition, a deputy governor of Indonesia's central bank said on Wednesday that inflation in February will be lower than in January due to the stronger rupiah. Meanwhile, Bank Indonesia's SBI one month auction was at average 6.407 percent (100 percent of total bids), 3 month was at average 6.59367 percent (100 percent of total bids), and six month was at average 6.6926 percent (100 percent of total bids).