Rupiah Extends Weekly Losses Despite Softer Dollar

2026-10-23 06:52 By Farida Husna 1 min. read

The Indonesian rupiah held near IDR 18,080 per U.S.

dollar on Friday, remaining above the 18,000 mark for a third straight session despite broad weakness in the greenback.

The dollar index hovered near a three-week low as Treasury yields fell sharply.

However, domestic pressures continued to weigh on the currency.

Fiscal concerns persisted amid oil prices near USD 100 per barrel, given Indonesia’s status as a net oil importer.

Concerns also grew that Bank Indonesia may face a difficult trade-off between defending the currency and supporting near-term growth.

Earlier this week, the board kept benchmark interest rate unchanged for a fourth straight month but raised the deposit facility rate by 25bps.

It also gradually cut the reserve requirement ratio for commercial banks, effective Nov. 1, freeing up around IDR 190 trillion to the banking system.

For the week, the rupiah was on track for a second consecutive weekly loss, down around 0.6%, bringing its year-to-date decline to roughly 8%.



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Rupiah Extends Weekly Losses Despite Softer Dollar
The Indonesian rupiah held near IDR 18,080 per U.S. dollar on Friday, remaining above the 18,000 mark for a third straight session despite broad weakness in the greenback. The dollar index hovered near a three-week low as Treasury yields fell sharply. However, domestic pressures continued to weigh on the currency. Fiscal concerns persisted amid oil prices near USD 100 per barrel, given Indonesia’s status as a net oil importer. Concerns also grew that Bank Indonesia may face a difficult trade-off between defending the currency and supporting near-term growth. Earlier this week, the board kept benchmark interest rate unchanged for a fourth straight month but raised the deposit facility rate by 25bps. It also gradually cut the reserve requirement ratio for commercial banks, effective Nov. 1, freeing up around IDR 190 trillion to the banking system. For the week, the rupiah was on track for a second consecutive weekly loss, down around 0.6%, bringing its year-to-date decline to roughly 8%.
2026-10-23
Rupiah Extends Losses as Dollar Strength, Fiscal Risks Weigh
The Indonesian rupiah weakened toward IDR 18,040 per U.S. dollar on Thursday, continuing its previous decline amid broad-based dollar strength ahead of next week’s Federal Reserve meeting, where interest rates are widely expected to remain unchanged. Locally, oil prices around USD 100 per barrel added to fiscal concerns, while a steeper rise in food costs linked to El Niño sustained inflationary pressures. Sentiment was further dampened by President Prabowo’s criticism of MSCI’s proposed changes to Indonesia’s market classification, deepening worries about potential foreign capital outflows. Still, Bank Indonesia’s liquidity measures may have helped cushion the decline. The central bank held its key rate steady for a fourth straight month in October but raised the deposit facility rate by 25bps to 5%. It also announced reserve requirement cuts for commercial banks, from 9% to 8% from Nov. 1 and to 7% starting Dec. 1, expected to inject around IDR 190 trillion into the banking system.
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Rupiah Hovers Near IDR 18,000 as BI Adjusts Policy Tools
The Indonesian rupiah traded near IDR 18,000 per U.S. dollar on Wednesday afternoon, recovering from an intraday low of IDR 18,060 after Bank Indonesia kept its key interest rate unchanged at 5.75% for a fourth straight month. To support the currency amid a market selloff sparked by MSCI’s warning over Indonesia’s market status, the central bank raised its deposit facility rate by 25bps to 5% and enhanced incentives for DNDF hedging to help attract foreign capital. To bolster domestic liquidity, the board cut the reserve requirement ratio by 1 ppt to 8% starting Nov. 1 and further to 7% from Dec. 1, a measure expected to inject around IDR 190 trillion into the financial system. Governor Destry Damayanti noted that cumulative rate hikes of 100bps earlier this year had helped anchor inflation expectations. Globally, the dollar index steadied after touching a three-week low, helped by rising oil prices that rekindled inflation concerns and reinforced safe-haven demand for the greenback.
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