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USD/IDR slips as traders weigh Indonesia budget and upcoming BI meeting

USD/IDR was around 17,880 during Asian hours after a softer-than-expected US inflation report pressured the dollar, while markets also cut the chance of a September rate hike.

Reported · Written up by our desk · Major Pairs

FXStreet reports that USD/IDR lost ground for a third straight session, trading around 17,880 during Asian hours on Friday.

Traders said they were holding back ahead of President Prabowo Subianto’s 2027 budget address to parliament later in the day, with expectations that the proposal would prioritize domestic consumption despite investor anxiety around commodity export restrictions.

Attention is also moving to Bank Indonesia’s policy meeting next week, its first after Governor Perry Warjiyo’s sudden departure and following a cumulative 100 basis points of rate hikes across May and June.

FXStreet added that the dollar faced downward pressure after US inflation data came in cooler than expected, including wholesale costs flat in July after a revised 0.1% decline in June, and a core Producer Price Index rise of 0.2% versus 0.3% expected, helping shift Fed rate expectations as markets lowered the probability of a September hike to 34.8% from 40% immediately after the PPI release.

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