Rupiah Stays Fragile Near Record Low

2026-05-14 04:36 By Farida Husna 1 min. read

The Indonesian rupiah hovered near record lows of IDR 17,500 per dollar in thin holiday trading on Thursday, after briefly firming below 17,450 in the prior session.

A stronger U.S.

dollar dampened sentiment, while rising inflation reinforced expectations that the Fed will stay hawkish.

Concerns over Bank Indonesia’s ability to defend the currency resurfaced ahead of next week’s policy meeting, as some analysts call for a rate hike to 5.0% from the current 4.75% to stem capital outflows.

President Prabowo recently criticized Governor Warjiyo over the rupiah’s weakness while endorsing new measures, including tighter forex rules and liquidity tweaks.

Traders also remained cautious amid weak domestic fundamentals, declining reserves, fiscal strains, and persistent foreign selling.

Limiting losses, the government has launched a bond stabilisation fund to support debt markets amid rising yields.

So far this week, the rupiah has fallen about 0.5%, heading for a seventh straight weekly loss.



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Rupiah Stays Fragile Near Record Low
The Indonesian rupiah hovered near record lows of IDR 17,500 per dollar in thin holiday trading on Thursday, after briefly firming below 17,450 in the prior session. A stronger U.S. dollar dampened sentiment, while rising inflation reinforced expectations that the Fed will stay hawkish. Concerns over Bank Indonesia’s ability to defend the currency resurfaced ahead of next week’s policy meeting, as some analysts call for a rate hike to 5.0% from the current 4.75% to stem capital outflows. President Prabowo recently criticized Governor Warjiyo over the rupiah’s weakness while endorsing new measures, including tighter forex rules and liquidity tweaks. Traders also remained cautious amid weak domestic fundamentals, declining reserves, fiscal strains, and persistent foreign selling. Limiting losses, the government has launched a bond stabilisation fund to support debt markets amid rising yields. So far this week, the rupiah has fallen about 0.5%, heading for a seventh straight weekly loss.
2026-05-14
Rupiah Inches Higher After Hitting Fresh Historic Low
The Indonesian rupiah edged up to around IDR 17,490 per dollar on Wednesday, recovering after briefly sliding past 17,500 the prior day to a fresh record low. Support came from growing speculation that the central bank may lift its benchmark rate at next week’s meeting, after keeping it at 4.75% since October, to stem capital outflows and defend the currency. Sentiment also improved as the government will launch a bond stabilisation fund to support the debt market amid rising yields and continued foreign selling. However, the rebound was limited as the dollar index firmed further after higher-than-expected U.S. inflation data, dampening hopes for near-term Fed cuts. President Prabowo recently criticized Governor Perry Warjiyo over the rupiah’s weakness while backing seven new measures, including tighter forex rules and liquidity adjustments. Even so, the rupiah has lost about 4.6% this year, weighed down by soft fundamentals, shrinking reserves, fiscal strains, and sustained outflows.
2026-05-13
Rupiah Under Pressure After Prabowo Rebuke
The Indonesian rupiah weakened toward a fresh low of IDR 17,500 per dollar on Tuesday, extending losses for a fourth session as the U.S. dollar firmed after President Trump warned the Iran cease-fire was “on life support". Locally, pressure mounted amid doubts over Bank Indonesia’s capacity to defend the currency, with local media reporting President Prabowo reprimanded Governor Perry Warjiyo over the prolonged weakness. Still, Prabowo endorsed seven BI measures, from tighter forex rules to liquidity tweaks and potential cuts to dollar purchase limits. Domestic fundamentals added strain: April retail sales grew the least in nine months, consumer mood hovered near a five-month low, and foreign reserves fell for a fourth month to their lowest since mid-2024. External risks compounded the slide, with Middle East tensions threatening energy costs, capital outflows draining bond and equity markets, and fiscal pressures deepening, leaving the rupiah vulnerable despite soft April inflation.
2026-05-12