Rupiah’s Movement Influenced by Fed Decision to Hold Interest Rates

Jakarta (ANTARA) – Permata Bank chief economist Josua Pardede said the rupiah’s exchange rate against the US dollar on Thursday was influenced by the US Federal Reserve’s decision to keep interest rates unchanged.

At the opening of trading on Thursday, the rupiah strengthened by 43 points, or 0.24 per cent, to Rp18,141 per US dollar, compared with the previous close of Rp18,184 per US dollar.

“At the October 2026 Federal Open Market Committee (FOMC) meeting, the Fed kept its policy rate at 3.75–4.00 per cent, in line with consensus expectations,” Josua told ANTARA in Jakarta on Thursday.

The Fed reiterated its commitment to maintaining price stability.

Two FOMC members, Governor Lisa Cook and Cleveland Fed President Beth Hammack, dissented, favouring a 25-basis-point rate increase.

The US central bank also announced a reduction in the number of policy meetings next year at which members will vote on the policy rate.

“The Fed gave no clear indication of the possibility of raising the policy rate again in December 2026, stressing that future policy decisions will depend on incoming data and will be aimed at bringing inflation back to the 2 per cent target,” Josua said.

On the basis of these factors, the rupiah is forecast to trade in a range of Rp18,100–Rp18,225 per US dollar.