Rupiah Holds Range Amid Dollar Strength and Political Tensions
The Indonesian rupiah traded around IDR 18,100 per U.S. dollar on Monday, remaining in a narrow range since last week. A broadly firmer dollar weighed on the currency after solid U.S. jobs data fueled bets on a further Fed rate hike. Elevated oil prices also pressured the rupiah, straining fiscal conditions, given Indonesia's status as a net oil importer. Locally, Bank Indonesia continued to intervene to smooth currency volatility, with forex reserves edging higher to USD 146.8 billion in October. Traders awaited MSCI's November index review later this week, while its final decision on Indonesia's market classification is expected by June 2027. September retail sales data, due Tuesday, was also in focus after a strong August reading. Political tensions lingered after a wiretapping scandal involving senior police officers, with further protests expected this week. Meanwhile, consumer mood hit a five-month high in October despite persistent job cuts across several sectors.
The Indonesian rupiah traded around IDR 18,100 per U.S. dollar on Monday, remaining in a narrow range since last week. A broadly firmer dollar weighed on the currency after solid U.S. jobs data fueled bets on a further Fed rate hike.
Elevated oil prices also pressured the rupiah, straining fiscal conditions, given Indonesia's status as a net oil importer. Locally, Bank Indonesia continued to intervene to smooth currency volatility, with forex reserves edging higher to USD 146.8 billion in October. Traders awaited MSCI's November index review later this week, while its final decision on Indonesia's market classification is expected by June 2027. September retail sales data, due Tuesday, was also in focus after a strong August reading.
Political tensions lingered after a wiretapping scandal involving senior police officers, with further protests expected this week. Meanwhile, consumer mood hit a five-month high in October despite persistent job cuts across several sectors.