Rupiah weakens near IDR 17,720 per dollar on political and inflation worries
Indonesian rupiah traded around IDR 17,720 per U.S. dollar after briefly firming near IDR 17,650, pressured by Jakarta protest and ahead of August inflation data and July trade figures.
The Indonesian rupiah traded around IDR 17,720 per U.S. dollar on Wednesday, after briefly firming to around IDR 17,650 in the prior session.
The currency came under pressure amid caution over plans for a potentially massive protest in Jakarta Thursday, with demonstrators calling on parliament to immediately pass the Asset Forfeiture Bill.
Traders also remained cautious ahead of next week's August inflation data, as El Niño-related risks raised concerns about higher food prices.
July trade figures are also due, with the rupiah facing persistent external pressures and uncertainty over global energy markets.
Still, losses were capped by hopes of policy continuity under acting Governor Destry Damayanti, with Bank Indonesia expected to stay focused on currency stability.
Globally, the dollar steadied ahead of the latest U.S.
PCE inflation report, the Fed's preferred measure of inflation, as well as Fed Chair Kevin Warsh's speech at the Jackson Hole symposium Friday.