Indonesian Rupiah weakens as US Dollar gains amid rising Treasury yields
USD/IDR gains ground after two days of losses, trading around 17,980 during European hours on Thursday. The pair appreciates as the US Dollar (USD) rises amid elevated oil prices, while Treasury yields continue to offset the support from lower Fed rate-hike odds.
The Indonesian Rupiah weakened as the US Dollar strengthened, driven by rising Treasury yields and reduced prospects for Federal Reserve rate hikes. Oil prices surged, while geopolitical tensions between the US and Iran remained unresolved. Indonesia, a major oil importer, faced higher import costs, yet stronger-than-expected trade data provided some relief to the local currency.
The Bank Indonesia intervened in the market to stabilize the Rupiah. Analysts noted that weaker-than-expected US inflation data had dampened expectations for an early Fed rate hike, but inflation remained high, suggesting a possible December tightening. The USD strengthened amid lower oil prices, benefiting the pair.
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