Rupiah Advances Modestly, on Track for Second Weekly Rise

The Indonesian rupiah traded near IDR 17,875 per U.S. dollar on Friday, recovering after touching IDR 17,930 in the previous session. The currency drew support from a softer U.S. dollar and easing Treasury yields following strong demand at a 30-year bond auction. Locally, August retail sales posted their fastest growth in five months, amid continued government measures to cushion households against persistent cost pressures. Meanwhile, forex reserves remained near a five-month high in September, although sustained Bank Indonesia intervention and uncertain portfolio inflows posed potential risks. Inflation risks remain in focus after September figures accelerated to a three-month high, with food prices expected to remain a key source of upward pressure through year-end. Separately, analysts expect the trade surplus to remain modest amid strong imports and subdued exports. For the week, the rupiah was on track to gain around 0.1%, marking its second straight weekly advance.