The Indonesian Rupiah weakens after Perry Warjiyo’s unexpected departure raises concerns over central bank policy stability.
USD/IDR climbed to 18,130 in early European trading on Tuesday, extending gains for a second day. The pair’s rise follows the surprise resignation of Bank Indonesia Governor Perry Warjiyo, which sparked investor unease over the central bank’s policy direction.
Prior to the announcement, the Rupiah had shown relative stability, but the abrupt leadership change heightened concerns about monetary policy continuity. S&P stated the transition would not impact Indonesia’s credit ratings but acknowledged potential uncertainty ahead.
The US Dollar remained firm, supported by Fed rate hike expectations, with markets pricing an 81.4% chance of a 25-basis-point increase by September.