Rupiah Extends Decline Ahead of US Inflation Data
The Indonesian rupiah hovers near IDR 17,870 per US dollar on Wednesday
S. S. inflation data that could shape expectations for the Fed’s next policy move. Locally, weaker fundamentals weighed on sentiment, with retail sales and consumer mood staying subdued in July.
Focus now turns to Bank Indonesia’s policy meeting next week, its first since Perry Warjiyo stepped down last month, with acting Governor Destry Damayanti nominated as sole candidate to lead the central bank. BI raised its policy rate by a total of 100bps in May and June to support the rupiah. 88% in July, within the central bank's target band. The rupiah also found some support from hopes of policy continuity, as lawmakers are expected to approve Destry’s appointment smoothly, likely after Independence Day celebrations.