Strong Dollar Keeps Pressure on Indonesian Rupiah
The rupiah hit a fresh record low as the dollar gained on expectations of a December Fed hike, Market Talk reports, citing iFAST research.
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what happened
The Indonesian rupiah has hit a fresh record low, and according to iFAST research analyst Kok Jun Yong, dollar strength is the main reason. Markets are pricing in a Fed rate hike in December, which is pushing the greenback higher. The dollar rose 0.55% to 18,240 rupiah.
Kok said the rupiah is the currency least able to absorb this pressure. Investor sentiment is also weighed down by uncertainty over MSCI's proposed reclassification of Indonesia as a standalone market, as well as the removal of two Indonesian stocks in its November review.
He believes that if the Fed does raise rates in December, Bank Indonesia may follow suit to support the currency.
why it matters
For markets, this shows that the rupiah depends not only on domestic factors but also on Fed decisions. Expectations of tighter US monetary policy add pressure on emerging-market currencies, and a possible response from Bank Indonesia could affect the country's interest rates and bonds.
market impact
Rupiah and dollar: strong dollar and Fed hike expectations press on USD/IDR
- Indonesian rupiah pressure down — expectations of a Fed rate hike strengthen the dollar
- US dollar pressure up — expected December Fed hike supports demand for the currency
tags
instruments
sources
- Strong Dollar Keeps Indonesian Rupiah Under Pressure — Market Talk, 12 November 2026 at 03:30 UTC
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