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Forex

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.

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