The Indonesian rupiah firmed below IDR 17,600 per U.S. dollar on Wednesday, extending its recent gains amid optimism over Indonesia’s external position. Forex reserves rose to a five-month high in August, supported by government external-loan withdrawals, reinforcing expectations that buffers will remain ample in the coming months. Domestic sentiment also improved, with consumer sentiment hitting a three-month high in August on stronger household finances and brighter economic outlooks. Meanwhile, authorities intensified market interventions to curb food price volatility after annual inflation quickened to 3.19% in August. However, strength was capped by concerns over oil prices near USD 100 per barrel straining the state budget. Meanwhile, traders cautiously awaited July retail sales data following a third monthly decline in June. Globally, the dollar index steadied after recent losses as elevated oil prices rekindled inflation worries and tempered bets for aggressive Fed easing.