Rupiah Still Weak, Threatened with Touching Rp 18,000 per USD Again

The rupiah remains weak, trading at Rp 17,950 per US dollar, even as the Jakarta Composite Index (IHSG) managed a technical rebound during the first trading session on Wednesday. The stock index opened higher and touched the 5,700 level, recovering after a sharp decline of more than 2% in the previous day’s trade. CNBC Indonesia FX Analyst Elvan Chandra Widyatama assessed that the IHSG’s rebound was not surprising given the deep corrections experienced in recent days. However, the rupiah continues to face significant pressure. The Indonesian financial market is still overshadowed by several negative sentiments, including foreign selling driven by concerns over government policy direction and the commencement of a high interest rate era.