Rupiah Strengthens as US Dollar Drops to Rp18,040
The rupiah exchange rate opened stronger against the US dollar in trading on Friday (31/07/2026), marking the final trading session of the week and the month of July. According to Refinitiv data, the rupiah appreciated by 0.19% to the position of Rp18,040/US$ this morning. This strengthening follows a period of weakness in the previous session; on Thursday (30/07/2026), the ‘Garuda’ currency had corrected by 0.17% to the level of Rp18,075/US$.
Meanwhile, the US Dollar Index (DXY), which measures the strength of the greenback against six major world currencies, was observed to have strengthened by 0.26% to 100.130 as of 09:00 WIB. Despite this morning’s rise, the DXY remains significantly below its previous trading position after plunging 1.01% to the level of 99.864 on Thursday.
The rupiah’s movement today is influenced by both domestic and international sentiments. Externally, the Indonesian currency received a boost from the sharp weakening of the US dollar in global markets during the previous session. The DXY recorded one of its largest intraday declines against several major world currencies, as markets responded to US June inflation data and US economic growth figures from the last quarter. These data points have influenced market expectations regarding the direction of US Federal Reserve policy, following the central bank’s decision to maintain interest rates within the 3.50%-3.75% range during this week’s meeting. Although the DXY rebounded during Asian trading this morning, the sharp correction from the previous day is expected to provide space for the rupiah to move stronger.
Domestically, the market is closely monitoring the search for a successor to Perry Warjiyo as Governor of Bank Indonesia (BI). Warjiyo resigned from his position effective 25 July 2026 due to personal reasons. Currently, the position of BI Governor is being held by Senior Deputy Governor Destry Damayanti until a definitive governor is appointed.
Destry’s name has returned to the spotlight after President Prabowo Subianto made a lighthearted remark during an event for mass mortgage subsidies and housing credit distribution in Batang Regency, Central Java, on Thursday (30/07/2026). During the event, Prabowo corrected a statement by the Minister of Housing and Residential Areas, Maruarar Sirait, who referred to Destry as still serving as Senior Deputy Governor of BI. “The Minister of Housing was mistaken earlier. This Mrs. Destry is the acting governor. An acting official,” Prabowo stated.
While making a joke regarding Destry’s position, Prabowo emphasised that the appointment of the definitive BI Governor will still involve the House of Representatives (DPR). “But later, it will be up to the DPR,” he added. Besides Destry, several other names are being mentioned as candidates for the BI Governor position. Certainty regarding the definitive governor remains a key focus for the market, particularly concerning policy continuity and the independence of the central bank.