IDR holds near 18,110 against USD as Bank Indonesia deploys 100 basis points of hikes and liquidity measures to counter volatility.
The Indonesian Rupiah steadied around 18,110 per USD in Asian trading Thursday, supported by Bank Indonesia’s pledge to intensify market stabilization efforts. The central bank has raised rates by 100 basis points since May and is deploying spot FX intervention, NDFs, and rupiah securities to bolster liquidity and attract foreign capital.
Bank Indonesia’s moves follow the unexpected departure of Governor Perry Warjiyo and aim to counter downward pressure on the rupiah. The Fed’s hawkish pause, with dissenters pushing for a 25 basis point hike, could limit IDR gains as the USD regains momentum.
Markets await further clarity from the Fed, with Chair Kevin Warsh signaling no explicit forward guidance on future rate moves. The divergence in policy outlooks may keep USD/IDR volatile in the near term.