Rupiah Holds Near IDR 17,800 Ahead of BI Rate Call

2026-09-23 03:38 By Farida Husna 1 min. read

The Indonesian rupiah hovered near IDR 17,800 per U.S.

dollar on Wednesday, extending recent gains as traders awaited Bank Indonesia’s policy decision later today.

Markets expect the central bank to leave its benchmark rate unchanged at 5.75% for a third straight month as policymakers balance currency stability against domestic growth amid heightened global macro pressures.

The board has already delivered 100bps of cumulative tightening earlier this year, leaving less room for further aggressive hikes without weighing on economic activity.

Meanwhile, falling oil prices eased concerns over imported inflation and fiscal strain, although domestic price pressures persisted after annual inflation accelerated to 3.19% in August, driven partly by higher food prices amid El Niño-related supply disruptions.

However, a firm U.S.

dollar capped the rupiah’s gains, with the dollar index holding near an eight-week high as hawkish Fed signals reinforced bets of another rate hike later this year.



News Stream
Rupiah Holds Near IDR 17,800 Ahead of BI Rate Call
The Indonesian rupiah hovered near IDR 17,800 per U.S. dollar on Wednesday, extending recent gains as traders awaited Bank Indonesia’s policy decision later today. Markets expect the central bank to leave its benchmark rate unchanged at 5.75% for a third straight month as policymakers balance currency stability against domestic growth amid heightened global macro pressures. The board has already delivered 100bps of cumulative tightening earlier this year, leaving less room for further aggressive hikes without weighing on economic activity. Meanwhile, falling oil prices eased concerns over imported inflation and fiscal strain, although domestic price pressures persisted after annual inflation accelerated to 3.19% in August, driven partly by higher food prices amid El Niño-related supply disruptions. However, a firm U.S. dollar capped the rupiah’s gains, with the dollar index holding near an eight-week high as hawkish Fed signals reinforced bets of another rate hike later this year.
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Rupiah Inches Up as BI Signals FX Support
The Indonesian rupiah edged higher to near IDR 17,850 per U.S. dollar on Tuesday, snapping an eight-session losing streak after Bank Indonesia pledged intervention to ensure orderly trading. Officials said tools would include offshore and domestic NDFs, spot FX transactions, and secondary-market bond purchases. The central bank began its two-day policy meeting today, with local media and analysts widely expecting interest rates to stay unchanged as policymakers lean on FX operations and central bank securities to steady the currency. Borrowing costs have been held for two months after 100bps of hikes since May. On the fiscal side, Finance Minister Suahasil Nazara urged constructive debate over the statutory 3% deficit cap, following lawmakers’ push to revise the 2003 State Finance Law to allow wider shortfalls for social programs. Gains were constrained, however, by a firmer U.S. dollar near a two-month high, as hawkish Fed remarks supported higher-for-longer rate expectations.
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Rupiah Holds Near IDR 17,810 as BI Meeting Looms
The Indonesian rupiah was little changed on Monday, hovering near IDR 17,810 per U.S. dollar after a seven-session losing streak, as traders positioned for Bank Indonesia’s policy decision this week. The central bank will begin its two-day meeting Tuesday, after leaving key rates unchanged at 5.75% for a second straight month in August following 100bps of hikes since May. Governor Destry Damayanti recently underscored currency stability as her priority alongside monetary, macroprudential and payment-system measures. Meanwhile, softer oil prices, aided by diplomatic efforts in the Middle East, eased imported inflation concerns, though domestic pressures persisted after August’s annual inflation quickened to 3.19%. Fiscal risks also lingered as lawmakers reportedly debated revising the 3% deficit cap to allow more welfare and development spending. Globally, the dollar index held near 100.2 as investors looked to remarks from Fed officials this week for signals on the policy outlook.
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