Rupiah Set for Third Weekly Decline as Dollar Holds Firm
The Indonesian rupiah hovered around IDR 17,900 per U.S. dollar on Friday, struggling to move away from the IDR 18,000 level hit earlier this week. A persistently strong dollar continued to weigh on sentiment, with the greenback holding near an 18-month high amid expectations for further Fed tightening as inflation remains elevated and Middle East uncertainty adds to risks. Meanwhile, Bank Indonesia Governor Destry Damayanti said recent rupiah pressure reflected global conditions, shifts in capital flows and weaknesses in external-sector fundamentals. Locally, September headline inflation accelerated to a three-month high, driven by persistent food-price pressures partly linked to El Niño effects. For the week, the rupiah is on track to log its third consecutive weekly decline, down around 0.1% so far. Traders now await September foreign-exchange reserves, consumer confidence and August retail sales data next week.
S. dollar on Friday, struggling to move away from the IDR 18,000 level hit earlier this week. A persistently strong dollar continued to weigh on sentiment, with the greenback holding near an 18-month high amid expectations for further Fed tightening as inflation remains elevated and Middle East uncertainty adds to risks. Meanwhile, Bank Indonesia Governor Destry Damayanti said recent rupiah pressure reflected global conditions, shifts in capital flows and weaknesses in external-sector fundamentals.
Locally, September headline inflation accelerated to a three-month high, driven by persistent food-price pressures partly linked to El Niño effects. 1% so far. Traders now await September foreign-exchange reserves, consumer confidence and August retail sales data next week.