Rupiah Eases Ahead of Key Local Data

The Indonesian rupiah slipped toward IDR 17,950 per U.S. dollar on Monday after briefly firming to around IDR 17,850 in the previous session. The weakness came as the dollar index held near an 18-month high, despite traders scaling back bets on an imminent Federal Reserve rate hike following soft U.S. jobs data. Caution prevailed ahead of key domestic releases this week, including September forex reserves and August retail sales. Meanwhile, Indonesia’s external position remained fragile despite an August trade surplus, with elevated imports and energy costs weighing on the balance amid Middle East uncertainty. Still, fiscal conditions stayed supportive, with the deficit contained through August, providing some support for the rupiah. Local media also said Bank Indonesia could raise its benchmark rate to 6% in the coming months as rising food and energy costs and recent rupiah weakness heighten inflation risks. In September, annual inflation accelerated to 3.28%, a three-month high.