Rupiah Strengthens for Fourth Consecutive Day, US Dollar Falls to Rp17,750
The rupiah exchange rate closed sharply higher against the US dollar at the start of the week. According to Refinitiv data, at Monday’s (10/8/2026) close, the rupiah appreciated by 0.75% to Rp17,750 per US dollar. This strengthening extends the positive trend for the rupiah, which has now risen for four consecutive trading days since 5 August 2026.
The rupiah strengthened from the opening of trade. It opened 0.48% higher at Rp17,800 per US dollar in the morning and continued to gain ground until the close. Throughout the day, the rupiah moved in a range of Rp17,730 to Rp17,825 per US dollar. The closing position was 50 points stronger than the opening level.
Meanwhile, the US Dollar Index (DXY), which measures the greenback against six major world currencies, was observed strengthening 0.12% to 99.656 at 15.00 WIB. The rupiah managed to strengthen sharply even as the DXY edged slightly into positive territory. The Garuda currency’s gains accelerated during the afternoon after the Presidential Palace announced Destry Damayanti as the sole candidate for Bank Indonesia (BI) Governor.
President Prabowo Subianto has sent a letter to the House of Representatives (DPR) regarding the BI Governor candidate. Minister of State Secretary Prasetyo Hadi confirmed that only one name was submitted. "The name is single, one name, Mrs. Destry Damayanti," Prasetyo told reporters at the Parliament Complex, Senayan, Jakarta, on Monday (10/8/2026). Destry currently serves as the Acting Governor of BI after Perry Warjiyo resigned on 25 July 2026 for personal reasons.
The submission of a single name provides greater certainty regarding the direction of the BI leadership transition. This certainty is important for the market as it relates to the continuity of monetary policy, rupiah stability, and central bank independence. However, Destry must still undergo a process in the DPR before being confirmed as the definitive BI Governor.
From the external side, the DXY remaining around its lowest level in two months also provided a positive boost for the rupiah. The US dollar came under pressure on Friday last week after the July employment report showed the US economy unexpectedly lost jobs, while data for the previous two months was revised sharply downwards. This weakening of the labour market has reduced expectations of a US Federal Reserve interest rate hike in September. The market now sees a 44% chance of a rate hike, down from 67% the previous week. Global market participants are now awaiting US inflation data for July, which will provide important clues about the direction of Fed policy and could determine the movement of the US dollar and its impact on the rupiah.