Rupiah Firms on Foreign Inflows, Steady Reserves

2026-08-07 05:46 By Farida Husna 1 min. read

The Indonesian rupiah firmed to near IDR 17,900 per U.S.

dollar on Friday, inching higher after the prior session's losses as renewed foreign inflows into government bonds and domestic equities in July ended several months of sustained selling.

Sentiment was further lifted by subdued domestic inflation, with July's headline rate easing to a three-month low amid government food stabilisation efforts alongside the harvest season in parts of Java.

Fresh data also showed Indonesia's forex reserves remained broadly stable in July, underscoring resilient external buffers.

Meanwhile, the dollar index was little changed as investors awaited the closely watched U.S.

July jobs report for fresh clues on labor market strength and the Fed's policy outlook.

For the week, the rupiah was on track for its first weekly gain in three, rising about 0.5% so far, supported by improving fiscal sentiment after President Prabowo's administration recently announced notable cuts to its flagship spending program.



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Rupiah Firms on Foreign Inflows, Steady Reserves
The Indonesian rupiah firmed to near IDR 17,900 per U.S. dollar on Friday, inching higher after the prior session's losses as renewed foreign inflows into government bonds and domestic equities in July ended several months of sustained selling. Sentiment was further lifted by subdued domestic inflation, with July's headline rate easing to a three-month low amid government food stabilisation efforts alongside the harvest season in parts of Java. Fresh data also showed Indonesia's forex reserves remained broadly stable in July, underscoring resilient external buffers. Meanwhile, the dollar index was little changed as investors awaited the closely watched U.S. July jobs report for fresh clues on labor market strength and the Fed's policy outlook. For the week, the rupiah was on track for its first weekly gain in three, rising about 0.5% so far, supported by improving fiscal sentiment after President Prabowo's administration recently announced notable cuts to its flagship spending program.
2026-08-07
Rupiah Eases Ahead of BI Forex Reserves Data
The Indonesian rupiah traded around IDR 17,900 per U.S. dollar on Thursday, edging lower as caution emerged ahead of Bank Indonesia's July foreign exchange reserves release on Friday, after briefly strengthening to IDR 17,835 in the previous session. Meanwhile, external concerns lingered after Indonesia posted another trade deficit in June, driven by surging crude oil imports. Still, losses were limited by a softer U.S. dollar, as the partial reopening of the Strait of Hormuz weighed on oil prices, helping curb inflation concerns and reducing expectations for further Fed tightening. The rupiah remained up about 0.4% for the week, aided by softer July inflation following government food stabilisation measures and the harvest season in parts of Java. Foreign inflows into government bonds also helped underpin the currency, while overseas investors returned as net buyers of domestic equities in July after several months of sustained selling.
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The Indonesian rupiah firmed to around IDR 17,930 per U.S. dollar on Wednesday afternoon after briefly slipping near IDR 18,050 in the prior session. Support came from a softer greenback after reports of a possible interim U.S.–Iran deal to reopen the Strait of Hormuz sent oil prices tumbling, easing inflation risks and trimming expectations for further rate hikes. Domestically, sentiment brightened as Q2 GDP expanded 5.29% yoy, beating forecasts despite slowing from Q1. On a quarterly basis, output jumped 3.73%, the fastest in a year, rebounding from a 0.77% drop in Q1. Inflation also cooled to 2.88% in July, a three-month low and well within Bank Indonesia’s target band. However, gains were capped by concerns over external balances amid a persistent trade gap in June following a surge in crude imports. Traders also stayed cautious amid leadership uncertainty at Bank Indonesia after Perry Warjiyo’s abrupt exit, with markets awaiting President Prabowo’s choice for the next governor.
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