Major CCY

The euro hovered at its weakest levels in three weeks on Monday and the dollar remained firm as Europe remained divided over aid to debt-burdened Greece ahead of a summit later this week. Uncertainty over Greece and a surprise rate hike by India kept investors cautious about riskier assets, but it lacked momentum to push higher. Japanese domestic markets were closed for a national holiday, leaving yen trade thin. Final approval of healthcare reform by the U.S. House of Representatives saw little immediate dollar reaction. The dollar traded at $1.3522 per euro from $1.3530 last week, after earlier rising to $1.3498, the highest level since March 2. The yen traded at 122.45 per euro from 122.51, after earlier climbing to 122.17, the strongest since March 10. Japan's currency was at 90.50 per dollar.

Forecast:

The dollar will benefit more after a little risk- negative after monetary tightening in India, that also add speculation on more central banks will follow India in raising interest rates boosted demand for safer investments. Expected range: 90.25 – 90.75

USD/IDR

The Rupiah was slightly depreciated from strongest level in 7 months, due to correction in stock market, and regional sentiment. Month-end corporate demand also contributing in today's rupiah weakened. The rupiah traded in the range 9110 – 9130. Opened higher at 9130 but went lower again to lowest at 9110, before closed at 9122. In addition, Senior Deputy Governor Darmin Nasution commented today that Indonesia's central bank doesn't see a need to review its key interest rate. The comments wiped the speculation on interest rate hike next month, as other Asian countries such Malaysia and India already hiked its benchmark rate in the last meeting, and Thailand also indicate to raise its borrowing cost in the coming month.

In other news, Indonesian Finance Minister Sri Mulyani said fast rise in rupiah will not hurt exports. According to the minister, the current level of rupiah value against foreign currencies, especially the U.S. dollars, remains within safe limits for the country's exports. Tomorrow will be IDR bonds auctions for 1yr, 15 yrs, 20 yrs, and 28 yrs tenors, with target auction of IDR 5 trillion.