The rupiah opened flat against the US dollar on Wednesday (21 October\n2026). Refinitiv data showed it opening at Rp17,980 per US dollar,\nunchanged from Tuesday\u2019s close at the same level.<\/p>\n
Meanwhile, the US dollar index (DXY), which measures the greenback\nagainst six major currencies, was up 0.10% at 101.803 at 9am Western\nIndonesian Time (WIB).<\/p>\n
Markets are focused on Bank Indonesia\u2019s (BI) interest-rate decision,\ndue to be announced today following its Board of Governors Meeting, amid\npressure on the rupiah.<\/p>\n
In a poll of 13 financial institutions conducted by CNBC Indonesia\nResearch, most respondents forecast that BI would raise its benchmark\nrate by 25 basis points to 6.00%. Ten expected an increase, while the\nother three forecast that the BI Rate would remain at 5.75%.<\/p>\n
If implemented, the move would add to BI\u2019s rate increases so far this\nyear. The central bank previously raised rates by a cumulative 100 basis\npoints in May and June 2026, from 4.75% to 5.75%, to support rupiah\nstability and head off inflationary pressures.<\/p>\n
Expectations of a further increase reflect the rupiah\u2019s earlier fall\nbeyond Rp18,000 per US dollar, as well as growing domestic price\npressures.<\/p>\n
Statistics Indonesia (BPS) reported that annual inflation reached\n3.28% in September 2026, up from 3.19% in August. The figure brought\ninflation closer to the upper limit of BI\u2019s 3.5% target, although core\ninflation remained relatively contained at 2.84%.<\/p>\n
The situation is also drawing market participants\u2019 attention as they\nassess the direction of BI\u2019s monetary policy. Juniman, an economist at\nBank Maybank Indonesia, said the rupiah\u2019s weakness and rising domestic\ninflation were the central bank\u2019s two main considerations in setting\ninterest rates.<\/p>\n
He said energy and food price pressures also warranted close\nattention because they could raise production and transport costs.\nHowever, with inflation still within BI\u2019s target range, Juniman said\npressure on the rupiah posed the greater challenge for the central bank\nin making its decision this time.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-opens-flat-as-us-dollar-holds-at-rp17-980-1792551049", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }