Rupiah fluctuates as markets focus on BI policy direction

Bank Indonesia Governor Destry Damayanti said decisions on the benchmark interest rate would continue to take account of economic data and market conditions.

Jakarta (ANTARA) – The rupiah weakened by 10 points, or 0.06 per cent, at the close of trading on Friday to Rp18,147 per US dollar, compared with the previous close of Rp18,137.

Muhammad Amru Syifa, research and development specialist at the Indonesia Commodity & Derivatives Exchange (ICDX), said the rupiah had fluctuated as markets focused on the direction of Bank Indonesia’s (BI) monetary policy.

“BI Governor Destry Damayanti said decisions on the benchmark interest rate would continue to take account of economic data and market conditions,” he told ANTARA in Jakarta on Friday.

Destry also said BI had a number of instruments to maintain rupiah stability, including not only interest rates but also incentives for hedging costs, macroprudential policy and Bank Indonesia Rupiah Securities (SRBI).

This indicates that BI still has room to respond to pressure on the rupiah using a range of policy instruments.

Meanwhile, data released in the United States on Thursday (29 October) showed that PCE inflation rose to 3.6 per cent year on year in September, from 3.4 per cent the previous month. US economic growth in the third quarter of 2026 was also recorded at 3.4 per cent year on year.

Amru said the figures showed that US economic activity remained fairly strong, while inflationary pressures had not fully eased.

“This could keep market participants factoring in the possibility of tighter Federal Reserve monetary policy ahead,” Amru said.

Looking ahead, market participants will continue to monitor US inflation, the Fed’s policy direction and the market response to global economic conditions.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also weakened today, to Rp18,138 per US dollar from Rp18,128 previously.