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Rupiah weakens after Indonesia consumer confidence hits weakest level since 2025
USD/IDR held near 17,860 in Asian hours as Bank Indonesia said confidence remains stable despite the consumer gauge sliding for a third straight month.
FXStreet reported that USD/IDR held gains on Monday, trading around 17,860 during Asian hours after a prior session move of more than 0.5% lower for the rupiah. The currency pair maintained an upward bias as Indonesia’s domestic consumer confidence data weighed on sentiment.
The consumer confidence index fell to 116.8 in July from 117.8 in June, marking a third consecutive monthly decline. FXStreet said Bank Indonesia did not specify the drivers behind the drop, but emphasized that the index signals consumer confidence remains stable.
FXStreet also linked the rupiah pressure to a stronger US dollar, supported by safe-haven demand amid heightened geopolitical tensions. It cited developments around the US-Iran conflict, including diplomatic talks involving Oman on safe shipping near the Strait of Hormuz, and reports of attacks in the region.
The report added that attention is turning to leadership changes at Bank Indonesia, with local media saying President Prabowo is preparing to submit a shortlist to replace Perry Warjiyo as governor. FXStreet cited Commerzbank, which said acting governor Destry Damayanti is widely viewed as the frontrunner, and that parliament is expected to review nominations after returning from recess on 14 August, with approval expected to take one to two weeks.