10.08.202607:57:32UTC+00Rupiah Strengthens as BI Nomination Lifts Sentiment

The Indonesian rupiah strengthened to around IDR 17,760 per U.S. dollar on Monday afternoon, rising for a second consecutive session, after President Prabowo Subianto nominated acting Bank Indonesia Governor Destry Damayanti as the sole candidate for the central bank’s top post. State Secretary Prasetyo Hadi confirmed that the nomination had been submitted to parliament, with the approval process expected to take several weeks. Destry is set to replace Perry Warjiyo, who stepped down as central bank governor in late July for personal reasons.

Market sentiment was further supported by the return of foreign investors to Indonesian government bonds and equities in July, ending months of sustained outflows and offering some respite for the rupiah. Investors now turn their attention to June retail sales data, due Tuesday, after a weak reading in May.

On the global front, the U.S. dollar index weakened as softer-than-expected U.S. employment data tempered expectations for further monetary tightening by the Federal Reserve, providing additional support to the rupiah.