Rupiah Holds Above IDR 18,100 Amid Mounting Pressures
The Indonesian rupiah remained above IDR 18,100 per U.S. dollar on Tuesday, hovering near its weakest level since late July as the dollar stayed firm ahead of the Fed’s upcoming policy decision. Locally, fiscal concerns added to pressure amid elevated oil prices and the government’s proposal to make education free from primary school through university, potentially adding to budget strains from free school meals and other costly commitments. Inflation risks also mounted, as September figures accelerated to a three-month high of 3.28%, reflecting rising food prices linked to El Niño. Meanwhile, Bank Indonesia Governor Destry Damayanti said the central bank would maintain its intervention strategy despite heightened volatility amid escalating Middle East tensions. She added that BI stayed active in the market, describing recent currency movements as part of normal market dynamics. A central bank official also said rupiah fluctuations remained manageable and within BI’s tolerance limits.
The Indonesian rupiah remained above IDR 18,100 per U.S. dollar on Tuesday, hovering near its weakest level since late July as the dollar stayed firm ahead of the Fed’s upcoming policy decision. Locally, fiscal concerns added to pressure amid elevated oil prices and the government’s proposal to make education free from primary school through university, potentially adding to budget strains from free school meals and other costly commitments. Inflation risks also mounted, as September figures accelerated to a three-month high of 3.28%, reflecting rising food prices linked to El Niño.
Meanwhile, Bank Indonesia Governor Destry Damayanti said the central bank would maintain its intervention strategy despite heightened volatility amid escalating Middle East tensions. She added that BI stayed active in the market, describing recent currency movements as part of normal market dynamics. A central bank official also said rupiah fluctuations remained manageable and within BI’s tolerance limits.