Rupiah Closes Weak, US Dollar Rises to Rp17,865
Jakarta - The rupiah exchange rate ended trading in the red against the United States (US) dollar once again. This latest depreciation extends the pressure on the Garuda currency for two consecutive trading days.
According to Refinitiv data, the rupiah closed down 0.20% at Rp17,865 per US dollar in trading on Wednesday (12/8/2026). In the previous session, the rupiah had also depreciated by 0.45% to the level of Rp17,830 per US dollar.
Pressure on the rupiah increased compared to its opening position. The rupiah started trading with a slight weakening of 0.06% at the level of Rp17,840 per US dollar, before losing 25 points by the close.
Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was observed to have edged up 0.03% to 99.856 as of 15.00 Western Indonesia Time.
The rupiah’s movement was still influenced by cautious market sentiment ahead of the announcement of US consumer inflation data for July, scheduled for Wednesday local time. This data will serve as the latest clue in estimating the direction of the US central bank’s (The Federal Reserve/The Fed) interest rate.
A weaker-than-expected US employment report previously opened the door for The Fed to hold interest rates steady. However, the risk of persistently high inflation means the market has not completely ruled out the possibility of a rate hike.
Chicago Fed President Austan Goolsbee stated that the central bank is currently more concerned about inflation being too high than about a weakening labour market. The market is now pricing in a 52% chance that The Fed will hold rates steady in September, while the probability of a 25-basis-point increase stands at 48%.
Inflation risks have also increased after oil prices moved higher following attacks on a key shipping route in the Middle East. Rising energy prices have the potential to sustain inflationary pressures while supporting the US dollar.
On the domestic front, the market is still observing the leadership transition process at Bank Indonesia (BI) after President Prabowo Subianto proposed Destry Damayanti as the sole candidate for central bank governor. Certainty regarding the candidate for BI governor is a key focus as it relates to the continuity of monetary policy and rupiah stability.
Minister of State Secretary Prasetyo Hadi stated that Destry’s track record and extensive experience in economics and finance were the government’s primary considerations. “She has also served two terms as Senior Deputy Governor. That is one of the most fundamental reasons, certainly her competence,” he said.
Destry’s name has been submitted to the House of Representatives (DPR) via a Presidential Letter to undergo a fit and proper test. The government has also proposed candidates for Senior Deputy Governor and Deputy Governor of BI, but the identities of these candidates are still awaiting an official announcement from the DPR.