The Indonesian rupiah hovered near IDR 17,650 per U.S. dollar on Friday, remaining below IDR 17,700 for a second consecutive session as the dollar weakened. Traders reduced expectations of a Federal Reserve rate hike this month after dovish comments from a central bank official, while a sharp yen rally and speculation of Japanese intervention after a rate check also pressured the greenback. Bank Indonesia Governor Destry Damayanti, sworn in Wednesday as the central bank’s first female governor, said domestic inflation remained under control and called for cooperation among the government, central bank, businesses, and economists to support growth. She raised the 2027 growth outlook to 5.2%-6%, with the upper end representing Indonesia’s strongest pace since 2012. A narrow July trade surplus also supported the currency as stronger non-oil and gas exports partly offset a surge in imports, particularly fuel. Gains were limited by concerns that El Niño could disrupt food supplies and raise prices, while August headline inflation accelerated from July’s three-month low and core inflation reached its highest level since March 2023. Investors awaited next week’s August foreign-exchange reserves, consumer confidence, and July retail sales data. The rupiah had gained about 0.25% and was on track for a fifth consecutive weekly advance.