Rupiah strengthens below IDR 17,700 as dollar slides
Indonesian rupiah traded below IDR 17,700 per U.S. dollar Thursday, strengthening for a second straight session as the dollar index slid. Bank Indonesia’s Destry Damayanti was sworn in and backed a 2027 growth outlook of 5.2%-6%.
The Indonesian rupiah traded below IDR 17,700 per U.S. dollar on Thursday, strengthening for a second straight session as the dollar index extended its slide.
The greenback was pressured by a sharp yen rally amid speculation of Japanese intervention following a rate check.
Domestically, Destry Damayanti was sworn in Wednesday as Bank Indonesia’s first female governor, pledging responsive policy to balance stability and growth.
She also raised the 2027 growth outlook to 5.2%-6%, with the upper end marking the strongest pace since 2012.
A narrow trade surplus in July also lent support, as stronger non-oil and gas exports helped offset a surge in imports, particularly fuel.
Gains were capped, however, by caution ahead of next week's foreign exchange reserves and consumer confidence data.
Meanwhile, inflationary pressures intensified, with August headline inflation accelerating from July's three-month low on higher food prices and core inflation climbing to its highest since March 2023.