Why Is the Rupiah Expected to Weaken in September?
The rupiah is expected to remain volatile in September as hawkish Fed signals and key U.S. economic data weigh on the currency.
The Indonesian rupiah is expected to weaken against the U.S. dollar in September 2026, according to Mirae Asset Sekuritas Indonesia Senior Market Analyst M. Nafan Aji Gusta Utama. This weakening is partly due to hawkish signals from Federal Reserve Chair Kevin Warsh, who indicated that U.S. inflation remains above the Federal Reserve's 2 percent target.
Warsh also noted that the U.S. unemployment rate is historically low and stable, with labor market turnover remaining subdued. The rupiah's volatility this month will depend on upcoming U.S. economic data, particularly inflation and labor market figures, ahead of the Federal Open Market Committee (FOMC) meeting. However, if U.S. economic data point to a slowdown or if inflation declines faster than expected, pressure on the rupiah could ease, reducing expectations of further increases in the Fed funds rate.
Brief written by urgent.news from Tempo.co English's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
