Indonesian Rupiah struggles amid record deficit, external pressures
USD/IDR halts its three-day losing streak, trading around 17,770 during the Asian hours on Tuesday. The pair appreciates as the Indonesian Rupiah (IDR) struggles under the weight of cautious market sentiment driven by persistent external pressures.
The Indonesian Rupiah (IDR) battles to maintain stability amid a record current account deficit of USD 12.5 billion in Q2 2026. External pressures, including high oil prices, strong import demand, and waning export performance, have intensified concerns over Indonesia's external balance. Traders remain cautious ahead of the July trade data and August inflation metrics, which could further strain the country's finances.
While Bank Indonesia, under acting Governor Destry Damayanti, aims to maintain currency stability, the USD/IDR pair holds near-term bearish bias, with resistance at the nine-period Exponential Moving Average (EMA) around 17,830.89 and support at the 50-period EMA at 17,877.96. Market sentiment remains cautiously optimistic regarding Bank Indonesia's policy stance.
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