Soft US economic data and a less hawkish Fed stance pressure the USD, easing gains in USD/IDR near 18,030.
USD/IDR retreated slightly to around 18,030 in Asian trading Thursday, trimming four-day gains as the US Dollar softened. Federal Reserve Chair Kevin Warsh’s remarks at the ECB Forum were perceived as less hawkish than expected, despite reiterating the 2% inflation target and Fed independence.
The pair had opened with a bullish gap but faced downward pressure as Warsh avoided signaling a July rate decision and emphasized gradual balance sheet adjustments. Weaker US economic data and easing geopolitical tensions in the Middle East further weighed on the Greenback.
Qatari officials reported progress in US-Iran nuclear talks, with Vice President JD Vance noting constructive discussions. Markets await further US data to gauge Fed policy direction.