Rupiah Inches Higher After Forex Reserve Data

2026-07-07 04:03 By Farida Husna 1 min. read

The Indonesian rupiah hovered near IDR 17,980 per U.S.

dollar on Tuesday, slightly firmer after briefly weakening to around IDR 18,050 in the prior session.

The modest upturn came as the U.S.

dollar remained under pressure ahead of the release of the Federal Reserve's June meeting minutes.

Domestically, Indonesia's forex reserves edged up in June after falling to a near two-year low in May, easing concerns over the country's external position following a recent warning from Fitch Ratings.

Meanwhile, the government is pursuing further cuts to allocations for President Prabowo's free meal program to improve fiscal efficiency, with the House Budget Committee reportedly proposing to trim the program's 2027 budget.

Easing global oil prices and the upgrade of the biodiesel program also continue to help curb overseas headwinds.

However, overall sentiment stayed guarded after weak May trade data.

Investors now await June consumer confidence and May retail sales for signals on domestic demand.



News Stream
Rupiah Inches Higher After Forex Reserve Data
The Indonesian rupiah hovered near IDR 17,980 per U.S. dollar on Tuesday, slightly firmer after briefly weakening to around IDR 18,050 in the prior session. The modest upturn came as the U.S. dollar remained under pressure ahead of the release of the Federal Reserve's June meeting minutes. Domestically, Indonesia's forex reserves edged up in June after falling to a near two-year low in May, easing concerns over the country's external position following a recent warning from Fitch Ratings. Meanwhile, the government is pursuing further cuts to allocations for President Prabowo's free meal program to improve fiscal efficiency, with the House Budget Committee reportedly proposing to trim the program's 2027 budget. Easing global oil prices and the upgrade of the biodiesel program also continue to help curb overseas headwinds. However, overall sentiment stayed guarded after weak May trade data. Investors now await June consumer confidence and May retail sales for signals on domestic demand.
2026-07-07
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