Rupiah Strengthens to Rp17,755 per US Dollar Amid Consumer Confidence Optimism
The rupiah exchange rate against the US dollar closed significantly stronger on Monday (10/8). The rupiah rose 142 points or 0.79 percent to Rp17,755 per US dollar, compared to the previous close of Rp17,897 per US dollar.
Money market analyst Ibrahim Assuaibi explained that the strengthening was driven by both internal and external factors. Domestically, the Consumer Confidence Index (IKK) remained a key support as it stayed in optimistic territory, despite showing a declining trend over the past three months.
According to Bank Indonesia data, the IKK in July 2026 was recorded at 116.8, slightly down from 117.8 in June 2026. Although it has declined consecutively, a figure above 100 indicates that consumers still hold a positive outlook on the national economic condition.
Ibrahim warned that if the downward trend in the IKK continues, there could be pressure on household consumption growth. “Households tend to hold back spending and become more selective in allocating their income,” he said.
In addition to economic data, positive sentiment also came from certainty in central bank leadership. President Prabowo Subianto has officially nominated Destry Damayanti as the sole candidate for the definitive Governor of Bank Indonesia to the House of Representatives (DPR) via a presidential letter.
Globally, markets responded positively to the potential reopening of the Strait of Hormuz through an agreement between Iran and Oman. Furthermore, easing inflation concerns in the United States led market participants to reduce expectations of an interest rate hike by the Federal Reserve.
Data from the CME FedWatch Tool showed the probability of a rate hike in September now stands at just 42 percent, down sharply from 67 percent the previous week. Market focus now turns to the release of US Consumer Price Index (CPI) data for July, which is predicted to ease to 3.4 percent year-on-year.
In line with the spot market, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also showed strengthening to Rp17,795 per US dollar from the previous position of Rp17,913 per US dollar.