USD/IDR gains ground for the third successive day, trading around 17,800 during the Asian hours on Thursday.
The currency pair is under downward pressure as the Indonesian Rupiah (IDR) struggles against fragile domestic sentiment
Ongoing major protests in Jakarta have left investors wary of potential unrest reminiscent of last year’s turmoil. Adding to this caution, markets are bracing for next week’s August inflation report, where El Niño-related weather risks threaten to drive up food prices. These concerns are further compounded by lingering external pressures and ongoing uncertainty in global energy markets ahead of the upcoming July trade data release.
Despite these immediate headwinds, reassuring comments from central bank leadership helped cap broader losses. Destry Damayanti, the sole nominee for Bank Indonesia Governor, told parliament that closer policy coordination would not undermine the central bank’s independence. She emphasized that Bank Indonesia will maintain a stance centered on economic stability while actively supporting growth, helping to reinforce market confidence in policy continuity.