US Inflation Eases: Can the Rupiah and IHSG Extend Their Rally?

Amid market concerns over potential US Federal Reserve interest rate hikes, positive news emerged from US consumer inflation data, which fell to 3.5% year-on-year in June 2026 from 4.2% previously. CNBC Indonesia FX Analyst Elvan Chandra Widyatama noted that the decline in US inflation, coinciding with a correction in global oil prices, is a sentiment expected to ease the Fed’s monetary policy tightening. However, the potential for rising oil prices amid renewed Middle East tensions remains a concern, as it could impact US interest rates, which have yet to reach the 2% target. On the currency front, the rupiah moved quite positively during Wednesday’s trading session, reaching Rp 18,000 per US dollar, though several sentiments still need to be monitored as they could pressure the Garuda currency.