Rupiah Weakens Amid Impact of FOMC Meeting

Jakarta (ANTARA) - The rupiah exchange rate against the US dollar weakened by 23 points or 0.13 per cent to Rp17,349 per US dollar on Thursday morning from the previous close at Rp17,326 per US dollar.

Permata Bank’s Chief Economist Josua Pardede assessed that the rupiah weakened against major global currencies during Wednesday’s (29/4/2026) trading session as investors positioned themselves ahead of the Federal Open Market Committee (FOMC) meeting.

“Cautionary sentiment is also reflected in the trend of rising US Treasury yields and Indonesian Government Securities (SBN),” he told ANTARA in Jakarta on Thursday.

At the April 2026 FOMC meeting, the Fed maintained its policy interest rate in the 3.50-3.75 per cent range.

This decision was marked by four dissenting votes, with Stephen Miran supporting a 25 basis point rate cut, while three other members opposed including a signal of easing in the official statement.

The Fed stated that it continues to monitor the economic implications of developments in the Middle East and is prepared to adjust policy if necessary.

“Markets viewed the statement as more hawkish, which drove up US Treasury yields and strengthened the US Dollar Index on Wednesday (29/4/2026),” he said.

In the press conference, Fed Chair Jerome Powell stated that although the chair’s position could change, he plans to remain on the Board of Governors until the end of his term.

The impact in Indonesia saw SBN yields rise significantly as investors anticipated a more hawkish stance from the Fed amid ongoing geopolitical tensions in the Middle East.

“Concerns over inflation have also increased in line with the trend of rising oil prices,” Josua said.

Based on these factors, the rupiah is projected to range between Rp17,275-Rp17,400 per US dollar.