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Rupiah steadies as Indonesia deficit records amid trade and inflation focus
USD/IDR trades near 17,770 after Indonesia’s current account deficit widened to a record USD 12.5 billion in Q2 2026, while traders look ahead to July trade and August inflation data.
The Indonesian rupiah stabilized after a three-day decline, with USD/IDR halting its slide and trading around 17,770 during Asian hours Tuesday, according to FXStreet.
The move comes as the IDR remains under pressure from external conditions, including concerns after Indonesia’s current account deficit widened to a record USD 12.5 billion in Q2 2026. FXStreet notes that elevated oil prices, firmer import demand, and weaker export performance could keep the external balance strained in the near term, with additional caution linked to El Niño risks and potential food price increases.
Traders are also positioned ahead of upcoming July trade data and August inflation metrics. Despite these headwinds, the downside for the rupiah may be limited by expectations that Bank Indonesia will keep a firm currency stability stance under acting Governor Destry Damayanti, following a decision to hold interest rates steady for a second straight month in August after cumulative 100 basis points of hikes since May.
FXStreet added that the US dollar has found safe-haven support amid escalating geopolitical tensions, after the US expanded secondary sanctions involving Iran-related trading. Gains for the greenback may be capped, however, by the US Treasury’s plan to double buyback operations for longer-dated bonds, with reporting that Secretary Scott Bessent could use up to $1 trillion from the Treasury General Account for repurchases.