July’s consumer confidence index fell to 116.8, the weakest since September 2025, weighing on the rupiah amid broader USD strength.
The Indonesian rupiah extended losses against the US dollar, with USD/IDR trading near 17,860 in Asian hours. The pair gained as July’s consumer confidence index dropped to 116.8 from June’s 117.8, marking its third straight monthly decline and the lowest reading since September 2025.
Bank Indonesia acknowledged the decline but described economic confidence as “stable,” citing strong perceptions of current conditions and optimistic future expectations. The central bank did not specify causes for the drop, though geopolitical tensions and safe-haven demand for the USD added further pressure.
Rising US-Iran tensions, including stalled negotiations over the Strait of Hormuz, supported the dollar’s strength. Iran indicated progress on a safe shipping route but warned reopening would not be immediate.