Rupiah Weakness Persists Near Record Low

2026-04-16 05:37 By Farida Husna 1 min. read

The Indonesian rupiah remained near a record low of IDR 17,130 per dollar on Thursday, even as the U.S.

dollar index hovered near a six-week low amid hopes for a Middle East truce.

The local currency faced pressure from multiple headwinds, including elevated oil prices, persistent capital outflows, fragile domestic fundamentals, and seasonal dividend repatriation.

These factors are likely to keep the central bank active in the market, potentially further straining forex reserves, which already fell to a near two-year low in March.

Meanwhile, the IMF cut Indonesia’s 2026 growth forecast to 5.0% from 5.1%, citing global uncertainty.

Inflation risks are tilted to the upside, driven by volatile energy prices and rising fiscal burdens linked to several key programs, despite March CPI within the central bank’s target.

Bank Indonesia is set to hold a policy meeting next week after leaving rates unchanged in March for a sixth straight time, following a total of 150bp cuts since September 2024.



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