FX.co ★ Rupiah Edges Higher After BI Vows Stronger Currency Support

The Indonesian rupiah traded around IDR 18,060 per U.S. dollar on Thursday, edging higher after briefly rising above IDR 18,100 the day before. The move came as the U.S. dollar softened following the Federal Reserve’s decision to leave interest rates unchanged, even as three voting members dissented in favor of a hike, highlighting divisions within the central bank.

Domestically, Bank Indonesia sought to reassure markets after the unexpected departure of Governor Perry Warjiyo, vowing to step up stabilization measures. The central bank emphasized that its strategy extends beyond policy rates, relying on a broad toolkit that includes spot foreign-exchange intervention, onshore and offshore non-deliverable forwards (NDFs), and the issuance of rupiah-denominated securities (SRBI) to manage liquidity and draw in foreign capital. BI noted that these tools complement the cumulative 100 basis points of rate hikes implemented since May.

Market participants are now looking ahead to key data releases next week—July inflation, May trade figures, and second-quarter GDP—for fresh insight into Indonesia’s economic outlook and the likely direction of monetary policy.