The rupiah closed 0.33% weaker at Rp 16,169 per US dollar compared to the previous close. Meanwhile, over the week, the rupiah strengthened 0.76%.

Referring to the BI Jisdor, the rupiah closed at Rp 16,162 per US dollar, a weekly gain of 0.84%.

Permata Bank Chief Economist, Josua Pardede, assessed that todays rupiah weakening occurred due to a shift in investor expectations regarding the Feds interest rate cut, from 75 bps to 50 bps.

This shift was caused by rising US producer inflation data, which reflects the impact of trade war tariffs, he told Kontan, Friday (August 15, 2025).

Strengthening global demand for the US dollar also put pressure on the rupiah exchange rate.

Throughout the week, the rupiah tended to strengthen, in line with rising expectations of an interest rate cut following the release of US consumer inflation data midweek.

However, these expectations eased slightly on Friday due to US producer inflation data.

Josua predicts the rupiah has the potential to move sideways at the start of this week, driven by sentiment ahead of the BI Board of Governors Meeting (RDG) announcement next Wednesday.

He estimates that the rupiah will move in the range of IDR 16,075 to IDR 16,225 per US dollar throughout the coming week

Source : KOntan.co.id

Aug 16, 2025