FX.co ★ Rupiah Edges Up as BI Pledges Support

The Indonesian rupiah briefly weakened to around IDR 17,970 per U.S. dollar on Thursday morning before recovering to roughly 17,930, after Bank Indonesia stated that its recent movements remained broadly in line with regional currencies. The central bank reiterated its commitment to stabilising the rupiah through interventions in offshore and onshore NDF markets as well as in the spot market. While foreign exchange reserves edged down slightly in September, they remained close to a five-month high. The IMF raised its 2026 growth forecast for Indonesia to 5.1% from 5.0%, citing policy measures to support household consumption and an anticipated increase in government spending, but cautioned that geopolitical tensions and energy supply risks could pressure oil-importing economies. Inflation accelerated to 3.28% year-on-year in September, highlighting persistent price pressures that could complicate the policy outlook. On the global front, the U.S. dollar index stayed firm, even as it eased from an 18-month peak, as traders evaluated the Federal Reserve’s stance following stronger-than-expected inflation data.