Rupiah softens as Bank Indonesia policy meeting begins
The Indonesian rupiah slid to around IDR 17,850 per U.S. dollar as Bank Indonesia opened its two-day policy meeting, with the interest-rate decision due Wednesday and cautious sentiment into Q2 current-account data.
The Indonesian rupiah edged lower to around IDR 17,850 per U.S. dollar on Tuesday, following a muted session in the prior day.
Sentiment remained cautious as Bank Indonesia began its two-day policy meeting, with the interest rate decision due Wednesday.
The central bank is widely expected to keep its policy rate unchanged under acting Governor Destry Damayanti, after delivering a cumulative 100bps of hikes since May.
Focus also shifted to the upcoming Q2 current account data, with the Q1 deficit reaching its widest level since 2019 amid weaker trade performance.
Still, weakness was partly cushioned by fiscal optimism after President Prabowo indicated resilient GDP growth next year, while the government vowed to build a fiscal buffer and bolster investor confidence.
Externally, the dollar index slipped to a near two-month low as traders pared back expectations for further Fed tightening this year amid softer U.S. economic data.