Rupiah Faces Selling Pressure Ahead of Rate Decision

2026-02-19 03:05 By Farida Husna 1 min. read

The Indonesian rupiah weakened past IDR 16,900 per dollar on Thursday, extending recent losses as the dollar index held firm on the back of strong U.S.

economic data and unexpected hawkish signals from Fed minutes.

Caution also intensified ahead of Bank Indonesia’s policy decision later today.

The board is widely expected to keep its key rate unchanged at 4.75% for a fifth meeting, after delivering a total 150bp of cuts since September 2024.

However, speculation over further easing persisted, with policymakers aiming to support growth as natural disaster risks remain elevated after last year’s Sumatra adversity.

Indonesia’s economy grew 5.11% in 2025, slightly below the 5.2% official target, while the 2026 growth goal has been set higher at 5.4%.

Fiscal support continues to focus on disaster recovery and social assistance during Ramadan and the upcoming Eid al-Fitr.

Traders are also awaiting Q4 current account data, after the balance posted its first surplus in almost two years in Q3.



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