Rupiah Extends Gains on Dollar Weakness, Strong Domestic Fundamentals
The Indonesian rupiah hovered around IDR 18,050 per U.S. dollar on Tuesday, up for a second straight session as the dollar index eased further amid stabilising energy prices ahead of U.S. inflation data. The rupiah led regional gains, while most Asian currencies traded in narrow ranges. Lower crude oil prices also eased pressure on Indonesia's import bill. Locally, sentiment was underpinned by resilient economic fundamentals, with the economy expanding by 5.47% yoy in Q3. Meanwhile, consumer confidence climbed to a five-month high in October, and retail sales extended their growth streak to a third month in September, albeit at a slower pace. Simultaneously, Bank Indonesia continued intervening to smooth currency volatility, while forex reserves edged higher in October. However, gains were limited by caution over student-led protests in several major cities this week and concerns about potential foreign outflows ahead of MSCI's November review of Indonesia's equity market.
The Indonesian rupiah hovered around IDR 18,050 per U.S. dollar on Tuesday, up for a second straight session as the dollar index eased further amid stabilising energy prices ahead of U.S. inflation data. The rupiah led regional gains, while most Asian currencies traded in narrow ranges.
Lower crude oil prices also eased pressure on Indonesia's import bill. Locally, sentiment was underpinned by resilient economic fundamentals, with the economy expanding by 5.47% yoy in Q3. Meanwhile, consumer confidence climbed to a five-month high in October, and retail sales extended their growth streak to a third month in September, albeit at a slower pace. Simultaneously, Bank Indonesia continued intervening to smooth currency volatility, while forex reserves edged higher in October.
However, gains were limited by caution over student-led protests in several major cities this week and concerns about potential foreign outflows ahead of MSCI's November review of Indonesia's equity market.