The Indonesian rupiah extended its decline on Wednesday, trading near IDR 17,870 per U.S. dollar as the dollar index edged higher before U.S. inflation data that may influence expectations for the Federal Reserve's next policy move. Domestic sentiment was also pressured by subdued July retail sales and consumer mood. Attention is now shifting to next week's Bank Indonesia (Indonesia's central bank) policy meeting, the first since Perry Warjiyo stepped down last month, with acting Governor Destry Damayanti nominated as the sole candidate to lead the central bank. Bank Indonesia had lifted its policy rate by a total of 100 basis points in May and June to support the rupiah, but July inflation slowed to a three-month low of 2.88%, remaining within the central bank's target band and potentially giving policymakers more flexibility. The currency drew some support from expectations of policy continuity, with lawmakers seen approving Destry's appointment smoothly, likely after Independence Day celebrations.