Indonesian Rupiah declines despite higher August inflation
USD/IDR edges higher after registering minor losses, trading around 17,770 during the Asian hours on Tuesday. The currency pair holds its ground as the US Dollar (USD) rebounds, driven by hawkish sentiment surrounding the Federal Reserve (Fed).
The Indonesian Rupiah has slipped despite a rise in Indonesia's August inflation figures. Indonesia’s annual inflation rose to 3.19% in August, surpassing expectations of 3.13% but still within the Bank Indonesia target band of 1.5%–3.5%. Core inflation hit its highest level since March 2023 at 2.92%. Meanwhile, US Dollar strength, driven by hawkish Federal Reserve (Fed) sentiment and expectations of a September rate hike, has been supporting the currency pair.
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Also reported by 2 other outlets
- Indonesia August inflation edges up brecorder.com
- Flash estimate: Inflation in Estonia up 0.3% in August news.err.ee
