Indonesian Rupiah Weakens as China PMI Data Disappoints

The Indonesian rupiah fell against the US dollar during Asian trading on Friday, with USD/IDR climbing to near 18,120 after two consecutive days of declines. The pair’s rise came as the rupiah struggled following the release of weaker-than-expected Purchasing Managers’ Index (PMI) figures from China.

China is Indonesia’s largest trading partner, and soft economic data from the region often dampens sentiment toward the rupiah. The disappointing PMI reading renewed concerns over demand for Indonesian exports, putting pressure on the currency.

The move erased some of the rupiah’s earlier gains this week, with the pair testing the 18,100 resistance area. Traders will watch further developments in China’s economic data for direction on the rupiah.