04.09.202604:56:01UTC+00Rupiah Set for Fifth Weekly Rise as Dollar Retreats

The Indonesian rupiah traded around IDR 17,650 per U.S. dollar on Friday, holding below the IDR 17,700 level for a second consecutive session as the greenback weakened further. The softer dollar came after traders scaled back expectations of a Federal Reserve rate hike this month, following dovish remarks from a Fed official.

At home, Bank Indonesia Governor Destry Damayanti said inflation remains under control and urged stronger coordination among the government, the central bank, businesses, and economists to support economic growth.

Upside for the rupiah was limited by mounting concerns that El Niño could disrupt food supplies and drive prices higher in the coming months. Investor caution also persisted ahead of key data releases next week, including August foreign exchange reserves, consumer confidence, and July retail sales, which are expected to provide fresh signals on domestic demand and the policy outlook.

Even so, the rupiah remained on track for a fifth straight week of gains, up about 0.25% so far.