Indonesian Rupiah holds firm as BI keeps rate steady at 5.75%
USD/IDR depreciates after registering modest gains in the previous day, trading around 17,870 during the European hours on Wednesday. The pair holds losses as the Indonesian Rupiah (IDR) remains stronger following the release of the interest rate decision by the Bank Indonesia (BI).
The Indonesian Rupiah maintained its strength on Wednesday as the Bank Indonesia (BI) kept its benchmark interest rate steady at 5.75% for a third consecutive meeting in August. This decision echoed market expectations, providing reassurance amid political concerns following the sudden resignation of former governor Perry Warjiyo and the appointment of Senior Deputy Governor Destry Damayanti as interim chief.
Meanwhile, the US Dollar weakened, influenced by easing expectations of a US interest rate hike next month and the release of weaker-than-expected US economic data. US Retail Sales fell in July for the first time in nine months, and job losses in the previous month were more significant than anticipated. Additionally, Consumer Price Index (CPI) inflation figures remained tame.
As a result, USD/IDR depreciated to around 17,870 during European trading hours, while GBP/USD and EUR/USD also showed signs of recovery in the face of softer US economic indicators. Gold prices slipped slightly and traded near the lower end of its daily range, while Shiba Inu, a meme coin, showed improving sentiment with positive funding rates and increased bullish traders.
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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