Indonesian Rupiah struggles as Consumer Confidence drops to weakest level since September 2025
USD/IDR holds gains after registering over 0.5% losses in the previous trading day, hovering around 17,860 during the Asian hours on Monday. The pair continues to trade with an upward bias as the Indonesian Rupiah (IDR) faces pressure following the release of domestic Consumer Confidence data.
The Indonesian Rupiah (IDR) experienced a decline in consumer confidence, reaching its lowest level since September 2025. The Consumer Confidence index dropped to 116.8 in July from 117.8 in June, marking the third consecutive monthly decline. Despite this downward trend, Bank Indonesia (BI) maintained a stable outlook, attributing the drop to overall economic confidence and positive expectations for future performance.
Meanwhile, geopolitical tensions between the United States and Iran continue to impact financial markets, particularly the USD/IDR exchange rate. The US Dollar gained strength due to increasing safe-haven demand amid the ongoing conflict, while Iran's potential reopening of talks with Oman added uncertainty. Discussions within Bank Indonesia are focusing on potential leadership changes, with Acting Governor Destry Damayanti being considered as a frontrunner to replace Perry Warjiyo.
Meanwhile, global currencies such as GBP/USD and EUR/USD are experiencing market volatility due to upcoming economic data releases and Federal Reserve chair-elect Kevin Warsh's Jackson Hole speech.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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