Rupiah Extends Losses Amid Firmer Dollar

2026-09-02 05:17 By Farida Husna 1 min. read

The Indonesian rupiah slipped toward IDR 17,780 per U.S.

dollar on Wednesday, down for the second session as the dollar index strengthened to a near three-week high amid surging oil prices that stoked inflation concerns and reinforced views of a less accommodative Fed stance.

Locally, caution emerged ahead of key domestic data due next week, including August forex reserves and consumer sentiment.

Meanwhile, domestic price pressures picked up, with headline inflation accelerating in August from July’s three-month low, driven by higher food prices, while core inflation hit its highest since March 2023.

Still, a narrow trade surplus offered some support for the rupiah, with stronger non-oil and gas exports helping offset a surge in imports, particularly fuel.

Separately, Parliament confirmed Destry Damayanti as Bank Indonesia governor, making her the first woman to lead the central bank.

She raised the 2027 growth outlook to 5.2%-6%, with the upper end marking the fastest pace since 2012.



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Rupiah Extends Losses Amid Firmer Dollar
The Indonesian rupiah slipped toward IDR 17,780 per U.S. dollar on Wednesday, down for the second session as the dollar index strengthened to a near three-week high amid surging oil prices that stoked inflation concerns and reinforced views of a less accommodative Fed stance. Locally, caution emerged ahead of key domestic data due next week, including August forex reserves and consumer sentiment. Meanwhile, domestic price pressures picked up, with headline inflation accelerating in August from July’s three-month low, driven by higher food prices, while core inflation hit its highest since March 2023. Still, a narrow trade surplus offered some support for the rupiah, with stronger non-oil and gas exports helping offset a surge in imports, particularly fuel. Separately, Parliament confirmed Destry Damayanti as Bank Indonesia governor, making her the first woman to lead the central bank. She raised the 2027 growth outlook to 5.2%-6%, with the upper end marking the fastest pace since 2012.
2026-09-02
Rupiah Holds Near IDR 17,730 as Markets Weigh Domestic, Global Cues
The Indonesian rupiah traded near IDR 17,730 per U.S. dollar on the first trading day of September, little changed from the prior session, as traders weighed mixed domestic signals. Annual inflation accelerated to 3.19% in August from July’s three-month low of 2.28%, slightly above expectations but still within Bank Indonesia’s target range. On the external front, Indonesia posted a narrow trade surplus in July, beating estimates for a deficit and ending a two-month run of trade gaps, as exports grew more than anticipated. Meanwhile, newly appointed Bank Indonesia Governor Destry Damayanti said stability and economic growth would be priorities, adding that closer policy coordination with the government would not compromise the central bank’s independence. Fiscal execution remained firm through July, with revenue up 21.3% yoy and spending rising 18.2%. Globally, the dollar index steadied after hawkish remarks from Chair Kevin Warsh and higher oil prices.
2026-09-01
Rupiah Steady as Destry Confirmed as New BI Governor
The Indonesian rupiah hovered around IDR 17,750 per U.S. dollar on Monday, steadying after recent weakness as House Commission XI approved Destry Damayanti as Bank Indonesia’s new governor for 2026–2031, succeeding Perry Warjiyo, who resigned in July. Destry pledged that closer policy coordination with the government would not compromise Bank Indonesia’s independence, stressing stability and growth as priorities. Globally, the dollar held near a two-week high following hawkish remarks from Fed Chair Kevin Warsh, lifting bets for a September rate hike. Focus now shifts to local key releases this week, including August inflation and July trade performance. Inflation hit a three-month low of 2.88% in July, within the central bank's target. Meanwhile, June posted a second straight monthly trade gap, driven by surging oil imports. For the month, the rupiah is on track to post its first gain in six months, up around 1.4% so far, on improving sentiment despite lingering external headwinds.
2026-08-31