Jakarta. Rupiah strengthened sharply against the US dollar on Thursday, gaining as markets assessed Destry Damayanti’s first day as Bank Indonesia governor and weaker US labor market data that weighed on the greenback.

The Indonesian currency closed at Rp 17,679 per US dollar, up 84 points or 0.47% from Wednesday’s close of Rp 17,763.

Traze Andalan Futures Director and currency analyst Ibrahim Assuaibi said the rupiah’s gains came as markets focused on Destry, who officially began her tenure as Bank Indonesia governor on Wednesday, becoming the first woman to lead the central bank.

During her confirmation hearing, Destry pledged to keep monetary policy responsive to economic challenges while maintaining stability and supporting economic growth.

The rupiah also withstood pressure from escalating tensions between the United States and Iran, Ibrahim said.

“Fresh concerns have emerged that an escalation in the military confrontation between the United States and Iran could further disrupt oil supplies from the Middle East. US forces attacked Iran’s southern coastal region, while Tehran retaliated by striking US positions across several parts of the region. This marks the most intense exchange of attacks between the two countries since July,” Ibrahim said in a statement on Thursday.

Meanwhile, weaker US labor market data added pressure on the US dollar, helping support the rupiah.

On monetary policy, Ibrahim said market participants were also increasingly speculating about the Federal Reserve’s next move following a firmer stance on inflation by Fed Chair Kevin Warsh at last week’s Jackson Hole Symposium.

“Market participants are increasingly speculating that the Fed could raise interest rates as early as its September meeting, particularly after Fed Chair Kevin Warsh adopted a firmer stance on inflation at last week’s Jackson Hole Symposium,” Ibrahim said.

Against the rupiah, the Singapore dollar stood at Rp 13,924, the Japanese yen at Rp 112.85, the Australian dollar at Rp 12,697, and the euro at Rp 20,510.

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