Rupiah Soars as Dollar Weakness Continues Amid US Measures

The Indonesian rupiah has continued its upward trend, strengthening to below IDR 17,800 per U.S. dollar on Thursday.

This marks an extension of recent gains as the dollar index hovered near a three-month low due to measures unveiled by the U.S. to contain long-term borrowing costs, including expanded bond buybacks.

Bank Indonesia reaffirmed its focus on currency stability during its first policy meeting under acting Governor Destry Damayanti, following Perry Warjiyo’s abrupt exit.

The central bank maintained its key rate at 5.75% for a second month, signaling policy continuity after a total 100bp hike since May.