FX.co ★ Rupiah Set to Post Fifth Consecutive Monthly Loss

The Indonesian rupiah traded around IDR 18,050 per U.S. dollar on Friday afternoon, largely unchanged from the previous session as markets awaited a busy domestic data calendar next week, including July inflation, May trade figures, and Q2 GDP. The U.S. dollar remained subdued, weighed down by the Federal Reserve’s cautious tone and suspected Japanese intervention to support the yen.

Despite that, the rupiah weakened about 0.5% over the week, extending earlier losses and setting it on track for a fifth consecutive monthly decline. The currency stayed under pressure amid uncertainty over the future direction of monetary policy following the abrupt departure of Perry Warjiyo as central bank governor, even after Bank Indonesia pledged to step up rupiah-stabilisation efforts through a broader policy mix beyond interest rates.

Analysts warn that if President Prabowo’s choice of successor prioritises political loyalty over technocratic credibility, concerns about potential “fiscal dominance” could intensify, further undermining investor confidence.