Rupiah Remains Weak Ahead of Policy Decision

2026-04-22 04:13 By Farida Husna 1 min. read

The Indonesian rupiah hovered near IDR 17,170 on Wednesday, holding above the key 17,000 level after briefly hitting a record low around 17,200 last week.

Sentiment remained fragile as the U.S.

dollar firmed, with haven demand rising after plans for a second round of U.S.–Iran peace talks collapsed.

Bank Indonesia is set to announce its policy decision later today, with markets expecting a seventh straight rate hold at 4.75%, as policymakers signal limited room for further easing after delivering 150bps of cuts since September 2024.

Indonesia remains exposed to higher energy costs as a net oil and gas importer despite recent hikes in non-subsidized fuel prices.

Inflation risks have intensified, while capital outflows persisted amid the dividend season.

Meantime, forex reserves fell to a two-year low in March as the central bank stepped up intervention.

Fiscal pressures also grew under President Prabowo’s key programs, though officials have pledged to keep the 3% deficit cap this year.



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