Rupiah Firms as BI Steps Up Stabilisation Efforts
The Indonesian rupiah weakened to IDR 18,185 per U.S. dollar on Thursday before recovering to around IDR 18,120 as Bank Indonesia reiterated its commitment to support the currency through NDF, DNDF, and spot interventions, alongside government bond purchases in the secondary market. Meanwhile, the dollar index held on to losses after the Federal Reserve kept interest rates unchanged as widely expected. Broader sentiment remained fragile amid domestic and external headwinds. Indonesia’s 10-year government bond yield reached 7.7% on Tuesday, its highest in four years and above the 2026 budget assumption of 6.9%, reflecting concerns over fiscal risks and inflation alongside elevated U.S. yields. Persistent foreign selling added to pressure amid uncertainty over Indonesia’s MSCI market status, with a potential downgrade to standalone status next year raising concerns over capital outflows. Traders now brace for key releases next week, including September trade and October inflation.
The Indonesian rupiah weakened to IDR 18,185 per U.S. dollar on Thursday before recovering to around IDR 18,120 as Bank Indonesia reiterated its commitment to support the currency through NDF, DNDF, and spot interventions, alongside government bond purchases in the secondary market. Meanwhile, the dollar index held on to losses after the Federal Reserve kept interest rates unchanged as widely expected. Broader sentiment remained fragile amid domestic and external headwinds.
Indonesia’s 10-year government bond yield reached 7.7% on Tuesday, its highest in four years and above the 2026 budget assumption of 6.9%, reflecting concerns over fiscal risks and inflation alongside elevated U.S. yields. Persistent foreign selling added to pressure amid uncertainty over Indonesia’s MSCI market status, with a potential downgrade to standalone status next year raising concerns over capital outflows. Traders now brace for key releases next week, including September trade and October inflation.