Rupiah Nears IDR 18,100 as Markets Assess Fed and BI Leadership Risks

2026-07-28 04:45 By Farida Husna 1 min. read

The Indonesian rupiah slid toward IDR 18,100 per dollar on Tuesday, marking a second day of losses as the greenback stayed firm ahead of the Fed’s policy decision later this week.

Domestically, sentiment was unsettled after Governor Perry Warjiyo resigned, with Senior Deputy Destry Damayanti stepping in as acting chief until a permanent successor is named.

The leadership change comes at a fragile moment, with fiscal strains, doubts over the government’s agenda, and fading foreign investor confidence weighing on Indonesian assets.

Concerns over central bank independence also lingered after President Prabowo appointed his nephew to the BI’s board.

Traders now look to the upcoming securities auctions for signals of the central bank’s resolve to aid the rupiah.

Last week, the board surprised markets by holding its key rate at 5.75%, despite expectations for another hike following 100bps of tightening since May.

The rupiah has lost near 8% this year, ranking among Asia’s weakest currencies.



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