Rupiah Extends Weakness Ahead of U.S. Inflation Data

2026-08-12 04:29 By Farida Husna 1 min. read

The Indonesian rupiah extended its decline, hovering near IDR 17,870 per U.S.

dollar on Wednesday, as the dollar index edged higher ahead of U.S.

inflation data that could shape expectations for the Fed’s next policy move.

Locally, weaker fundamentals weighed on sentiment, with retail sales and consumer mood staying subdued in July.

Focus now turns to Bank Indonesia’s policy meeting next week, its first since Perry Warjiyo stepped down last month, with acting Governor Destry Damayanti nominated as sole candidate to lead the central bank.

BI raised its policy rate by a total of 100bps in May and June to support the rupiah.

Meanwhile, contained inflation should provide room for policy flexibility, with Indonesia's inflation rate hitting a three-month low of 2.88% in July, within the central bank's target band.

The rupiah also found some support from hopes of policy continuity, as lawmakers are expected to approve Destry’s appointment smoothly, likely after Independence Day celebrations.



News Stream
Rupiah Extends Weakness Ahead of U.S. Inflation Data
The Indonesian rupiah extended its decline, hovering near IDR 17,870 per U.S. dollar on Wednesday, as the dollar index edged higher ahead of U.S. inflation data that could shape expectations for the Fed’s next policy move. Locally, weaker fundamentals weighed on sentiment, with retail sales and consumer mood staying subdued in July. Focus now turns to Bank Indonesia’s policy meeting next week, its first since Perry Warjiyo stepped down last month, with acting Governor Destry Damayanti nominated as sole candidate to lead the central bank. BI raised its policy rate by a total of 100bps in May and June to support the rupiah. Meanwhile, contained inflation should provide room for policy flexibility, with Indonesia's inflation rate hitting a three-month low of 2.88% in July, within the central bank's target band. The rupiah also found some support from hopes of policy continuity, as lawmakers are expected to approve Destry’s appointment smoothly, likely after Independence Day celebrations.
2026-08-12
Rupiah Retreats on Weak Domestic Data, BI Continuity in Focus
The Indonesian rupiah slipped back toward IDR 17,820 per U.S. dollar on Tuesday, easing from a near seven-week high and reversing gains from the prior two sessions. Pressure stemmed from soft domestic data, with retail sales declining for a third month in July and consumer confidence sliding to a 15-month low. Still, losses were cushioned by expectations of policy continuity at Bank Indonesia after acting Governor Destry Damayanti was named the sole candidate to lead the central bank. Lawmakers are set to reconvene later this week for the 2027 budget presentation ahead of Independence Day, and her approval is expected to proceed smoothly. The central bank is likely to keep its focus on rupiah stability and inflation control while supporting growth where space allows. Meanwhile, the U.S. dollar index steadied as investors weighed the Fed’s policy outlook before key inflation data, following a weaker-than-expected July jobs report.
2026-08-11
Rupiah Hits 7-Week Peak as BI Nomination Boosts Confidence
The Indonesian rupiah firmed to around IDR 17,760 per U.S. dollar on Monday afternoon, rising for a second straight session to a seven-week high. Momentum was lifted by President Prabowo Subianto’s nomination of acting Bank Indonesia Governor Destry Damayanti as the sole candidate to succeed Perry Warjiyo, who stepped down in late July. State Secretary Prasetyo Hadi confirmed the submission to parliament, with approval expected to take several weeks. Meanwhile, foreign inflows into Indonesian bonds and equities in July eased months of selling pressure, providing relief for the currency. Market focus now shifts to June retail sales data due Tuesday after May’s weak reading. Externally, the U.S. dollar index softened as below-forecast jobs data tempered expectations of further tightening, adding support to the rupiah’s advance.
2026-08-10