The Indonesian rupiah slipped to around IDR 17,990 per U.S. dollar on Monday, ending a five-session advance despite a softer U.S. dollar after weak U.S. employment data reduced further Fed rate hike bets.
Focus shifted to domestic risks ahead of June foreign exchange reserves data, after reserves fell for a fifth straight month in May to a near two-year low as Bank Indonesia intervened heavily to support the rupiah, prompting Fitch Ratings to warn of risks to Indonesia's credit profile.
Markets also cautiously await June consumer sentiment and May retail sales data for fresh demand signals.
Meanwhile, Indonesia posted its first trade gap since 2020 in May, as exports fell while imports stayed strong, reducing support from external balances.
Still, the downside was capped by news that the government is seeking further cuts to allocations for President Prabowo's free meal program to ease fiscal strain.
Lower oil prices and the biodiesel program also continue to help curb external risks.