Rupiah Lingers Near IDR 17,900 as Dollar Stays Strong
The Indonesian rupiah hovered near IDR 17,900 per U.S. dollar on Thursday, remaining in a tight range in recent sessions as the dollar index held near an 18-month high after the FOMC minutes reinforced a hawkish tone among Fed policymakers amid persistent price pressures. Middle East tensions also kept sentiment cautious, with potential disruptions to energy flows raising concerns over oil prices and Indonesia’s import costs. Meanwhile, domestic fundamentals remained in focus. Fresh data showed consumer confidence edged lower from September’s three-month top, reflecting concerns over elevated food prices and higher non-subsidised fuel costs. Headline inflation hit a three-month high in September, while August imports grew much faster than exports, though the trade surplus stayed stronger than expected. Forex reserves held relatively steady in September, near a five-month top, but continued rupiah support by Bank Indonesia could put pressure on reserves amid uncertain portfolio inflows.
S. dollar on Thursday, remaining in a tight range in recent sessions as the dollar index held near an 18-month high after the FOMC minutes reinforced a hawkish tone among Fed policymakers amid persistent price pressures. Middle East tensions also kept sentiment cautious, with potential disruptions to energy flows raising concerns over oil prices and Indonesia’s import costs. Meanwhile, domestic fundamentals remained in focus.
Fresh data showed consumer confidence edged lower from September’s three-month top, reflecting concerns over elevated food prices and higher non-subsidised fuel costs. Headline inflation hit a three-month high in September, while August imports grew much faster than exports, though the trade surplus stayed stronger than expected. Forex reserves held relatively steady in September, near a five-month top, but continued rupiah support by Bank Indonesia could put pressure on reserves amid uncertain portfolio inflows.