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Rupiah holds steady as inflation, oil risks weigh on USD/IDR
The Indonesian Parliament passed the 2027 Budget Bill into law, improving domestic fiscal clarity even as elevated crude oil prices and global inflation pressure the currency.
USD/IDR edged lower after opening with a bullish gap, trading around 18,050 during Asian hours on Tuesday, according to FXStreet.
The outlet links the broader pressure on the Rupiah to concerns tied to global inflation, heightened domestic fiscal risks, elevated crude oil prices, and a high interest-rate environment, which have weighed on investor confidence in the local currency.
Bank Indonesia officials said their market presence is meant to keep FX market mechanisms smooth and ensure the Rupiah reflects underlying economic fundamentals. They added that currency interventions are being conducted consistently and sustainably, with the Rupiah's recent trajectory broadly aligned with regional peers.
FXStreet also noted that domestic fiscal clarity improved after Indonesia's Parliament passed the 2027 Budget Bill into law. In addition, the central bank scaled back direct spot market interventions, with the governor describing a shift in its foreign exchange operations.
Latest closeWTI crude $93.42 ▲1.1%