Rupiah Firms as Dollar Weakness Continues

2026-08-20 05:05 By Farida Husna 1 min. read

The Indonesian rupiah strengthened to below IDR 17,800 per U.S.

dollar on Thursday, extending recent gains as the dollar index hovered near a three-month low.

The greenback remained under pressure after the U.S.

unveiled measures to contain long-term borrowing costs, including expanded bond buybacks.

Domestically, Bank Indonesia reaffirmed its focus on currency stability at its first policy meeting under acting Governor Destry Damayanti, following Perry Warjiyo’s abrupt exit.

As expected, the central bank held its key rate at 5.75% for a second month, signaling policy continuity after a total 100bp hike since May.

Officials stressed the policy mix would prioritise rupiah stability and guard against imported inflation, while liquidity tools would support growth.

The rupiah has gained about 0.4% this week, adding to strength from the prior two weeks, though upside remains capped by caution ahead of Q2 current account data, after Q1’s deficit hit its largest since 2019 on weaker trade.



News Stream
Rupiah Firms as Dollar Weakness Continues
The Indonesian rupiah strengthened to below IDR 17,800 per U.S. dollar on Thursday, extending recent gains as the dollar index hovered near a three-month low. The greenback remained under pressure after the U.S. unveiled measures to contain long-term borrowing costs, including expanded bond buybacks. Domestically, Bank Indonesia reaffirmed its focus on currency stability at its first policy meeting under acting Governor Destry Damayanti, following Perry Warjiyo’s abrupt exit. As expected, the central bank held its key rate at 5.75% for a second month, signaling policy continuity after a total 100bp hike since May. Officials stressed the policy mix would prioritise rupiah stability and guard against imported inflation, while liquidity tools would support growth. The rupiah has gained about 0.4% this week, adding to strength from the prior two weeks, though upside remains capped by caution ahead of Q2 current account data, after Q1’s deficit hit its largest since 2019 on weaker trade.
2026-08-20
Rupiah Steady as Bank Indonesia Holds Rates
The Indonesian rupiah was largely unchanged on Wednesday afternoon, hovering just below IDR 17,850 per U.S. dollar after Bank Indonesia kept its key rate unchanged at 5.75% for a second straight month, in line with expectations. It was the first policy decision under acting Governor Destry Damayanti, who assumed the role following Perry Warjiyo’s abrupt departure last month. So far this year, BI has lifted rates by a cumulative 100bps to bolster the currency and investor confidence. Destry emphasised that the pause reflects efforts to balance currency stability, inflation control, and growth. She also noted that forex reserves remain more than enough to safeguard the rupiah. In the near term, the central bank is expected to lean more on its broader toolkit, forex intervention and high-yielding central bank securities, rather than rate moves alone. Globally, the U.S. dollar index eased, with investors awaiting the Fed's July meeting minutes for clues on the policy outlook.
2026-08-19
Rupiah Strengthens Ahead of Bank Indonesia Rate Call
The Indonesian rupiah firmed to below IDR 17,850 per U.S. dollar on Wednesday, rebounding after briefly touching 17,950 in the prior session as traders positioned ahead of Bank Indonesia’s monetary decision later today. Markets anticipate policy continuity, with the board expected to leave rates unchanged at its first meeting under acting Governor Destry Damayanti. Focus is on how she navigates the balance between supporting currency stability and advancing President Prabowo’s growth agenda. Her nomination, after years as senior deputy to Perry Warjiyo, alongside a conservative 2027 budget proposal, has eased policy uncertainty and supported a recovery in Indonesian assets. However, strength was capped by caution ahead of Q2 current account data later this week, after Q1’s gap hit its largest since 2019 on weaker trade. Globally, the dollar index steadied after sliding to two-month lows, with investors awaiting minutes from the Fed’s July meeting for signals on U.S. monetary policy.
2026-08-19