The Indonesian rupiah traded near IDR 18,250 per U.S. dollar on Thursday, edging closer to its record low of IDR 18,279 as declines extended into a second straight session. The currency remained under pressure from a stronger U.S. dollar, which climbed to its highest level since April 2025 following hotter-than-expected October inflation data.
On the domestic front, sentiment was rattled by political turbulence after Vice President Gibran Rakabuming tendered his resignation in the wake of a Supreme Court ruling on the validity of his high-school diploma, which has triggered calls for parliamentary impeachment. The situation has intensified concerns over policy cohesion, government stability, and fiscal discipline.
Risks of foreign capital outflows also increased ahead of MSCI’s November review of Indonesia’s equity market. In response, Bank Indonesia continued to intervene in the foreign-exchange market to shore up the rupiah ahead of next week’s policy meeting. Nonetheless, investors remained wary about the trade-off between exchange-rate stability and economic growth after the central bank left interest rates unchanged for a fourth consecutive month in October.
