Rupiah strengthens as dollar weakens and new central bank chief sets growth target

The Indonesian rupiah traded below IDR 17,700 per U.S. dollar on Thursday, gaining for a second straight session as the dollar index fell. A July trade surplus also supported the currency, though higher imports, especially fuel, limited the benefit.

Destry Damayanti, sworn in Wednesday as Bank Indonesia’s first female governor, pledged policies aimed at balancing economic stability and growth. She raised the 2027 growth outlook to 5.2%-6%, while August inflation accelerated on higher food prices and core inflation reached its highest level since March 2023.

Currency gains were tempered by caution ahead of next week’s foreign-exchange reserves and consumer-confidence data.

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