8 September 2026, 09:05  Indonesia: Rupiah Firms on Dollar Weakness, Reserve Boost.

The Indonesian rupiah strengthened below IDR 17,650 per U.S. dollar on Tuesday, reversing prior losses as broad dollar weakness supported the currency, while yen gains on expectations of more aggressive BoJ tightening and continued carry-trade unwinding reinforced the broader FX move. Domestically, sentiment was buoyed after Finance Minister Purbaya Yudhi Sadewa voiced confidence that GDP growth would remain solid in Q3 and Q4 despite recent natural disasters, stressing that the state budget faced no significant risks. Stronger external buffers also lent support, with August forex reserves hitting a five-month high. However, upside was constrained by inflation concerns, as local media reported Bank Indonesia and the government stepped up joint market interventions to rein in volatile food prices, amid annual inflation of 3.19% in August. Investors also stayed cautious ahead of August consumer confidence data due Wednesday, followed by retail sales later in the week.

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