Daily Economic Research

KBVS ECONOMIC RESEARCH
Friday, 20 February 2026

Macro Highlight:
The DXY advanced by +0.08% to approach the 98 level, marking its highest point in the past three weeks. Looking ahead, markets will closely monitor reports suggesting that several Middle Eastern leaders are frustrated with the US for not  adopting a firmer stance toward Iran, alongside upcoming releases including China’s Loan Prime Rate decision, the US S&P Global Manufacturing PMI, and the US PCE inflation data (both headline and core).

The Rupiah depreciated further to IDR16,925 per USD (prev: IDR16,884 per USD), approaching its historical low, despite Bank Indonesia’s decision to maintain the BI Rate at 4.75%. Looking ahead, concerns over further Rupiah depreciation are expected to remain the key market driver, alongside regional data releases, particularly Japan’s lower inflation print and the PBOC’s Loan Prime Rate decision.

We anticipate a marginal increase in the 10Y SUN yield today (20 Feb ‘26), projecting it to range between 6.35% and 6.55%.

 

Regards,
KBVS Research Team

 

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