Indonesian Rupiah struggles amid foreign-exchange demand, portfolio outflows
USD/IDR recovers its recent losses from the previous trading day, trading around 17,980 during the Asian hours on Monday.
The Indonesian Rupiah (IDR) experienced fluctuations in its value amid a surge in foreign-exchange demand and portfolio outflows from domestic assets, according to a central bank official. The USD/IDR exchange rate steadied around 17,980 during the Asian hours on Monday, as the US Dollar (USD) gained strength due to supportive remarks from Federal Reserve officials.
Traders are closely monitoring critical economic releases scheduled for the week, including Indonesia's trade data for August, September inflation figures, and manufacturing activity metrics. Rising expectations for a potential Federal Reserve rate hike in October have bolstered the USD, weighing on the IDR. Fed officials' hawkish signals and geopolitical tensions in the Middle East, such as the US President's stance on Iran, have further contributed to the USD's appeal and the Rupiah's decline.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
