The Indonesian rupiah extended its decline to around IDR 17,750 per U.S. dollar as stronger U.S. economic data lifted the dollar index and reduced expectations for near-term Federal Reserve easing. Continued protests in Jakarta have added political uncertainty and may prompt foreign investors to reduce exposure to Indonesian assets, while renewed inflation concerns—particularly involving food and energy prices—could further complicate Bank Indonesia’s policy choices. Markets are awaiting August inflation and July trade data, with El Niño-related weather risks raising the prospect of higher food prices and June’s results highlighting pressure from global energy markets. A weaker rupiah could increase import costs and household price pressures, although exporters may benefit from improved currency competitiveness. Destry Damayanti, the sole nominee for Bank Indonesia governor, has signaled policy continuity, saying closer coordination would not compromise the central bank’s independence and that policy would remain focused on stability while supporting growth.