Rupiah Extends Gains After BI Holds Rates, Dollar Caps Upside

2026-02-20 08:01 By Farida Husna 1 min. read

The Indonesian rupiah hovered around IDR 16,880 per dollar on Friday, up for a second session after Bank Indonesia held its key rate for a fifth meeting, in line with consensus.

Governor Perry Warjiyo said the move aims to stabilize the currency and support growth following a total 150bp rate reduction since September 2024.

The board noted the rupiah remains undervalued and pledged continued intervention, helped by solid forex reserves.

It expects the currency to stabilize and gradually rise on the back of those measures and stable fundamentals.

Bank Indonesia projects growth to pick up in Q1 2026, driven by stronger household spending and investment.

However, the rupiah edged down about 0.2% this week as policymakers signaled they will assess room for further easing.

Meanwhile, Indonesia’s current account returned to a deficit in Q4 2025 after a surplus in Q3.

Globally, the dollar index hovered near 98, supported by strong US data and hawkish Fed rhetoric, capping the rupiah’s upside.



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The Indonesian rupiah hovered around IDR 16,880 per dollar on Friday, up for a second session after Bank Indonesia held its key rate for a fifth meeting, in line with consensus. Governor Perry Warjiyo said the move aims to stabilize the currency and support growth following a total 150bp rate reduction since September 2024. The board noted the rupiah remains undervalued and pledged continued intervention, helped by solid forex reserves. It expects the currency to stabilize and gradually rise on the back of those measures and stable fundamentals. Bank Indonesia projects growth to pick up in Q1 2026, driven by stronger household spending and investment. However, the rupiah edged down about 0.2% this week as policymakers signaled they will assess room for further easing. Meanwhile, Indonesia’s current account returned to a deficit in Q4 2025 after a surplus in Q3. Globally, the dollar index hovered near 98, supported by strong US data and hawkish Fed rhetoric, capping the rupiah’s upside.
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