Rupiah Dips Further as Holiday Trading Thins

2026-08-25 04:21 By Farida Husna 1 min. read

The Indonesian rupiah slipped toward IDR 17,740 per U.S.

dollar in thin holiday trading on Tuesday, extending its recent weakness and retreating further from last week’s near ten-week high.

Sentiment remained cautious amid persistent external pressures.

Indonesia’s current account deficit widened to a record USD 12.5 billion in Q2 2026, raising concerns that elevated oil prices, firm import demand and softer exports could keep the external balance under strain in the near term.

Traders also turned wary ahead of July trade data and August inflation next week, while El Niño risks added to food-price worries.

Still, losses were limited by optimism that Bank Indonesia, led by acting Governor Destry Damayanti, will stay focused on currency stability after holding rates for the second month in August, following a total 100bp hike since May.

Globally, the dollar steadied after recent gains as fresh U.S.

steps to restrict Iran’s access to the financial system kept geopolitical risks elevated.



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