Indonesian rupiah rises below IDR 17,750 after six-session losing streak

  • Indonesian rupiah strengthened below IDR 17,750 per U.S. dollar on Friday.
  • Headline inflation accelerated to 3.19% in August as food-price volatility persisted.
  • Bank Indonesia will hold its policy meeting next week after August’s unchanged borrowing costs.

The Indonesian rupiah edged above recent weakness on Friday, trading below IDR 17,750 per U.S. dollar as retreating oil prices reduced concerns about imported inflation. The move ended a six-session losing streak, although the currency remains set to fall around 0.7% this week, potentially ending six consecutive weeks of gains. Policymakers are also working to contain food-price volatility after headline inflation accelerated to 3.19% in August. The dollar index steadied after reaching a seven-week high as traders assessed the Federal Reserve’s policy outlook following its latest rate decision. Bank Indonesia is seeking to preserve an adequate interest-rate differential with the U.S. while supporting rupiah stability and economic growth. It will hold its policy meeting next week after keeping borrowing costs unchanged for a second consecutive month in August.

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