Rupiah weakens past IDR 17,600 as oil prices pressure Indonesia

  • Rupiah weakened past IDR 17,600 per U.S. dollar on Friday.
  • IDR 17,600 marked the currency’s level as it fell for a second session.
  • Bank Indonesia Governor Destry Damayanti said policy stability would be her focus.

The Indonesian rupiah weakened past IDR 17,600 per U.S. dollar on Friday, extending losses for a second straight session as the U.S. dollar index held gains before the latest U.S. consumer price index report later in the day. Indonesia’s fiscal outlook remained under pressure with global oil prices above USD 100 per barrel, a concern for the country as a net oil importer. Domestic price pressures also persisted after annual inflation accelerated to 3.19% in August, prompting authorities to intensify measures to limit food-price volatility. Despite the daily decline, the rupiah was on track for a sixth consecutive weekly increase, up about 0.1% so far, supported by an improved external position and foreign exchange reserves reaching a five-month high in August. New Bank Indonesia Governor Destry Damayanti said policy stability would be her focus, with monetary, macroprudential policy (measures to limit financial-system risks), and payment-system policies forming the central bank’s main policy pillars.

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