FX.co ★ Rupiah Stays Fragile Amid BI Leadership Shake-Up

The Indonesian rupiah traded near IDR 18,090 per U.S. dollar on Wednesday, remaining under pressure amid policy uncertainty following the sudden resignation of Perry Warjiyo as central bank governor. Local media reported that his departure came after a major dispute with the finance minister over economic growth strategies, though it is still unclear whether the disagreement directly prompted his exit. The president’s spokesperson has denied speculation of political pressure behind the move.

Some economists expect a permanent replacement to be appointed within the next two months, with markets likely to remain cautious until a new governor is formally installed. Bank Indonesia has raised interest rates by a total of 100 basis points since May to support the rupiah and lure foreign capital inflows. Despite these efforts, the currency has weakened about 8% so far this year, extending a losing streak that began two years ago.

Externally, the U.S. dollar index was steady ahead of the Federal Reserve’s policy decision later today, with investors widely anticipating that U.S. interest rates will be left unchanged.