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Indonesian rupiah firms as dollar retreats on Fed rate bets

USD/IDR was around 17,910 in Asian trade, after paring prior-day gains, while traders watch Nonfarm Payrolls for more clues on Fed policy.

Reported · Written up by our desk · EM Currencies

The Indonesian rupiah firmed against the US dollar as USD/IDR pared gains from the previous day, trading around 17,910 during Asian hours on Friday, according to FXStreet.

The move was linked to a softer US dollar on easing Federal Reserve rate hike bets, with the CME FedWatch Tool indicating traders are pricing nearly a 28% chance of an October rate increase.

FXStreet also noted that the dollar could regain strength if inflation concerns persist, including pressures from elevated energy costs, alongside expectations for a Fed rate hike in December.

The outlet said benchmark US Treasury yields were holding near 5.25% on the 10-year and about 5.62% on the 30-year after easing from multidecade highs, and that traders were monitoring upcoming Nonfarm Payrolls for guidance on monetary policy.

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