Rupiah closes weaker at Rp 17,667 per US dollar, triggered by signals of Fed rate hikes

The rupiah closed at Rp 17,667 per US dollar on Thursday, 21 May 2026, weakening by 13 points or 0.08 percent from Rp 17,654 per US dollar previously. Money market analyst Ibrahim Assuaibi said the rupiah’s weakness was influenced by the minutes of the Federal Open Market Committee (FOMC) in April 2026, which showed a majority of Federal Reserve officials warned of a potential interest-rate increase. Earlier in the April 2026 meeting, the FOMC decided to keep the target range for the federal funds rate at 3.5-3.75 percent. “The majority of Federal Reserve officials warned that the central bank may need to consider higher rates if inflation remains above their 2 percent target,” Ibrahim said in a written statement from Jakarta on Thursday. He noted the minutes also highlighted rising concerns among Fed officials about inflationary pressures triggered by the United States’ war with Iran. U.S. President Donald Trump was reported to say that the war with Iran was at a final stage. However, he also warned that failure to reach a deal could trigger further U.S. military action against Iran, thereby tempering global market optimism.