Rupiah Strengthens Further Despite Oil Price Risks

2026-09-09 04:37 By Farida Husna 1 min. read

The Indonesian rupiah firmed below IDR 17,600 per U.S.

dollar on Wednesday, extending its recent gains amid optimism over Indonesia’s external position.

Forex reserves rose to a five-month high in August, supported by government external-loan withdrawals, reinforcing expectations that buffers will remain ample in the coming months.

Domestic sentiment also improved, with consumer sentiment hitting a three-month high in August on stronger household finances and brighter economic outlooks.

Meanwhile, authorities intensified market interventions to curb food price volatility after annual inflation quickened to 3.19% in August.

However, strength was capped by concerns over oil prices near USD 100 per barrel straining the state budget.

Meanwhile, traders cautiously awaited July retail sales data following a third monthly decline in June.

Globally, the dollar index steadied after recent losses as elevated oil prices rekindled inflation worries and tempered bets for aggressive Fed easing.



News Stream
Rupiah Strengthens Further Despite Oil Price Risks
The Indonesian rupiah firmed below IDR 17,600 per U.S. dollar on Wednesday, extending its recent gains amid optimism over Indonesia’s external position. Forex reserves rose to a five-month high in August, supported by government external-loan withdrawals, reinforcing expectations that buffers will remain ample in the coming months. Domestic sentiment also improved, with consumer sentiment hitting a three-month high in August on stronger household finances and brighter economic outlooks. Meanwhile, authorities intensified market interventions to curb food price volatility after annual inflation quickened to 3.19% in August. However, strength was capped by concerns over oil prices near USD 100 per barrel straining the state budget. Meanwhile, traders cautiously awaited July retail sales data following a third monthly decline in June. Globally, the dollar index steadied after recent losses as elevated oil prices rekindled inflation worries and tempered bets for aggressive Fed easing.
2026-09-09
Rupiah Firms on Dollar Weakness, Reserve Boost
The Indonesian rupiah strengthened below IDR 17,650 per U.S. dollar on Tuesday, reversing prior losses as broad dollar weakness supported the currency, while yen gains on expectations of more aggressive BoJ tightening and continued carry-trade unwinding reinforced the broader FX move. Domestically, sentiment was buoyed after Finance Minister Purbaya Yudhi Sadewa voiced confidence that GDP growth would remain solid in Q3 and Q4 despite recent natural disasters, stressing that the state budget faced no significant risks. Stronger external buffers also lent support, with August forex reserves hitting a five-month high. However, upside was constrained by inflation concerns, even as local media reported that Bank Indonesia and the government stepped up joint market interventions to rein in volatile food prices, amid annual inflation of 3.19% in August. Investors also stayed cautious ahead of August consumer confidence data due Wednesday, followed by retail sales later in the week.
2026-09-08
Rupiah Holds Below IDR 17,700 as Forex Reserves Rise
The Indonesian rupiah remained below IDR 17,700 per U.S. dollar for a third straight session on Monday, hovering around IDR 17,650, as sentiment was supported by stronger external buffers and signs of fiscal prudence. August forex reserves rose to a five-month high of USD 146.5 billion, helped by government withdrawals of external loans. Meanwhile, the government’s plan to lower the 2027 fiscal deficit to 2.4% of GDP from 2.68% this year reinforced views of tighter fiscal management. Meanwhile, Bank Indonesia Governor Destry Damayanti said domestic inflation remains under control and called for closer coordination among the government, central bank, and businesses to support growth. Globally, the dollar index steadied ahead of U.S. inflation data later this week after recently rebounding on solid jobs data, which bolstered expectations of a Fed rate hike in Sept. Attention now turns to domestic data, including August consumer confidence and July retail sales, due later this week.
2026-09-07