Indonesian Rupiah Set for Longest Weekly Winning Streak in Two Years

The Indonesian rupiah is set to rise for a fifth straight week, its longest winning streak in two years. According to Sina Finance, Bank Indonesia has pledged to maintain exchange-rate stability, while expectations for Federal Reserve rate hikes have eased, supporting the currency. The dollar was expected to fall 0.4% against the rupiah this week. It traded at 17,628 in early Friday trading, down 0.2%, and was on track for its lowest close since May 20. Most major Asian emerging-market currencies also rose against the dollar. According to Sina Finance, OCBC foreign-exchange strategist Christopher Wong said in a report that Bank Indonesia's new governor, Destry Damayanti, signaled policy continuity this week and stressed that policy would prioritize stability, support foreign investors' appeal for Indonesian assets, and use a comprehensive policy mix to support economic growth. Wong also said that lower U.S. Treasury yields and a weaker dollar would provide some short-term support for the rupiah. He added that high oil prices and still-elevated global yields remain risks.