The Indonesian rupiah hovered around IDR 17,530 per U.S. dollar on Thursday, after briefly strengthening below IDR 17,450 in the previous session. Concerns over oil prices above USD 100 per barrel weighed on the outlook, as Indonesia is a net oil importer, potentially straining fiscal conditions. Still, the currency remained supported by improving sentiment, extending its upward momentum over the past week following Destry Damayanti’s appointment as the new Bank Indonesia governor. The external position also provided some support, with forex reserves rising to a five-month high in August, reinforcing expectations of ample external buffers in coming months. Domestic fundamentals also strengthened, with retail sales rising for the first time in four months in July. Authorities also stepped up measures to curb food-price volatility after annual inflation accelerated to 3.19% in August. Globally, the dollar index steadied ahead of key U.S. inflation data.