Rupiah Slides for 5th Session Ahead of Fed Decision

2026-09-16 04:33 By Farida Husna 1 min. read

The Indonesian rupiah slipped past IDR 17,700 per U.S.

dollar on Wednesday, extending its losing streak to five sessions as the dollar index hit a one-month high ahead of the Fed’s policy decision.

Markets widely expect the U.S.

central bank to deliver its first rate hike in around three years, keeping the greenback supported and weighing on emerging-market currencies.

Locally, headwinds persisted, with factory activity still weak in August, fragile household sentiment, and retail sales growth slowing.

External risks also intensified as crude oil rose above US$100 per barrel amid mounting Middle East tensions, while elevated global yields and cautious foreign investor mood added pressure on Indonesian assets.

These developments could complicate inflation and fiscal management for new Finance Minister Suahasil Nazara.

Bank Indonesia will hold a policy meeting next week after leaving its key rate unchanged for a second month in August, following cumulative tightening of 100bp since May.



News Stream
Rupiah Slides for 5th Session Ahead of Fed Decision
The Indonesian rupiah slipped past IDR 17,700 per U.S. dollar on Wednesday, extending its losing streak to five sessions as the dollar index hit a one-month high ahead of the Fed’s policy decision. Markets widely expect the U.S. central bank to deliver its first rate hike in around three years, keeping the greenback supported and weighing on emerging-market currencies. Locally, headwinds persisted, with factory activity still weak in August, fragile household sentiment, and retail sales growth slowing. External risks also intensified as crude oil rose above US$100 per barrel amid mounting Middle East tensions, while elevated global yields and cautious foreign investor mood added pressure on Indonesian assets. These developments could complicate inflation and fiscal management for new Finance Minister Suahasil Nazara. Bank Indonesia will hold a policy meeting next week after leaving its key rate unchanged for a second month in August, following cumulative tightening of 100bp since May.
2026-09-16
Rupiah Falls for 4th Session Amid Dollar, Oil Pressures
The Indonesian rupiah weakened toward IDR 17,700 per U.S. dollar on Tuesday, extending losses for a fourth straight session as the U.S. dollar index firmed ahead of the Fed’s policy decision later this week. Locally, elevated oil prices heightened inflation concerns after headline figures accelerated to 3.19% in August. As a net oil importer, Indonesia remains vulnerable to higher global energy costs, which could add pressure to both inflation and the fiscal position. On the policy front, Bank Indonesia is set to hold its policy meeting next week after keeping its key rate unchanged for a second consecutive month in August, following a cumulative 100bp tightening since May. Meanwhile, Suahasil Nazara was sworn in as the new finance minister, replacing Purbaya Yudhi in a surprise reshuffle, the third change in less than two years. Suahasil pledged budget discipline, including the 3% deficit cap, as external headwinds mount from rising U.S. Treasury yields and oil above $100 per barrel.
2026-09-15
Rupiah Weakness Persists Amid Surging Oil Prices
The Indonesian rupiah slipped toward IDR 17,650 per U.S. dollar on Monday, weakening for a third session as the U.S. dollar index continued to firm ahead of the Fed’s upcoming policy meeting. The currency also faced pressure from a jump in oil prices, which could further stoke inflation and weigh on Indonesia’s fiscal position as a net oil importer. Inflation concerns deepened after headline figures accelerated to 3.19% in August, despite government efforts to contain food-price volatility amid El Niño's impact. Still, weakness was partly limited by policy assurances from Bank Indonesia Governor Destry Damayanti, who recently said policy stability would remain a key focus, with monetary, macroprudential and payment-system policies forming the main pillars of the central bank’s framework. BI is due to hold its next policy meeting next week after keeping its benchmark rate unchanged for a second consecutive month in August, following a cumulative 100bp rate hike since May.
2026-09-14