Rupiah Weakens as Focus Turns to Forex Reserves Data

2026-07-06 04:17 By Farida Husna 1 min. read

The Indonesian rupiah slipped to around IDR 17,990 per U.S.

dollar on Monday, ending a five-session advance despite a softer U.S.

dollar after weak U.S.

employment data reduced further Fed rate hike bets.

Focus shifted to domestic risks ahead of June foreign exchange reserves data, after reserves fell for a fifth straight month in May to a near two-year low as Bank Indonesia intervened heavily to support the rupiah, prompting Fitch Ratings to warn of risks to Indonesia's credit profile.

Markets also cautiously await June consumer sentiment and May retail sales data for fresh demand signals.

Meanwhile, Indonesia posted its first trade gap since 2020 in May, as exports fell while imports stayed strong, reducing support from external balances.

Still, the downside was capped by news that the government is seeking further cuts to allocations for President Prabowo's free meal program to ease fiscal strain.

Lower oil prices and the biodiesel program also continue to help curb external risks.



News Stream
Rupiah Weakens as Focus Turns to Forex Reserves Data
The Indonesian rupiah slipped to around IDR 17,990 per U.S. dollar on Monday, ending a five-session advance despite a softer U.S. dollar after weak U.S. employment data reduced further Fed rate hike bets. Focus shifted to domestic risks ahead of June foreign exchange reserves data, after reserves fell for a fifth straight month in May to a near two-year low as Bank Indonesia intervened heavily to support the rupiah, prompting Fitch Ratings to warn of risks to Indonesia's credit profile. Markets also cautiously await June consumer sentiment and May retail sales data for fresh demand signals. Meanwhile, Indonesia posted its first trade gap since 2020 in May, as exports fell while imports stayed strong, reducing support from external balances. Still, the downside was capped by news that the government is seeking further cuts to allocations for President Prabowo's free meal program to ease fiscal strain. Lower oil prices and the biodiesel program also continue to help curb external risks.
2026-07-06
Rupiah Flat, on Track for Modest Weekly Decline
The Indonesian rupiah traded around IDR 17,960 per U.S. dollar on Friday, little changed from the previous session as traders awaited key domestic data due next week, including June forex reserves, consumer confidence, and May retail sales. Sentiment remained cautious after Fitch Ratings warned that a prolonged decline in forex reserves could pressure Indonesia's credit profile, with figures having fallen to a nearly two-year low in May. Meanwhile, Bank Indonesia reaffirmed its commitment to deploying all available tools to support the currency even as strong foreign inflows into government bonds and Bank Indonesia securities continued in June. Globally, the U.S. dollar index edged lower after weaker-than-expected U.S. labor market data dampened expectations of further Fed tightening this year. For the week, the rupiah is heading for a modest weekly loss of around 0.3%, weighed by Indonesia's first trade gap since April 2020 and a sharp contraction in manufacturing activity.
2026-07-03
Rupiah Weakness Deepens on Fitch Alert, Trade Gap
The Indonesian rupiah dipped toward IDR 17,990 per dollar on Thursday, marking a fourth straight session of losses as broad U.S. dollar strength weighed ahead of the key U.S. nonfarm payrolls report. Domestic sentiment also weakened after Fitch Ratings warned that sustained capital outflows or a prolonged decline in forex reserves could pressure Indonesia's sovereign credit profile, with reserves having fallen to a nearly two-year low in May. On the data front, Indonesia posted its first trade deficit since April 2020 in May, with exports unexpectedly falling while imports maintained double-digit growth, reducing support from external balances. Still, the rupiah's losses were partly limited by lower oil prices, which eased fiscal pressures, along with Bank Indonesia's recent pledge to deploy all available tools to stabilize the currency. Meanwhile, June inflation accelerated further, moving closer to the upper end of the central bank's 1-1/2%-3-1/2% target band.
2026-07-02