October 3, 2025 | 06:45 pm
TEMPO.CO, Jakarta - The Indonesian rupiah's exchange rate at the close of trading on Friday afternoon strengthened by 35 points or 0.21 percent to Rp16,563 per U.S. dollar from the previous Rp16,598 per U.S. dollar.
The Jakarta Interbank Spot Dollar Rate (JISDOR) from Bank Indonesia also slightly strengthened today to Rp16,611 per U.S. dollar from the previous Rp16,612 per U.S. dollar.
Economist Mirae Asset Rully Arya Wisnubroto said that the strengthening of the rupiah exchange rate was triggered by increased expectations of a cut in the Federal Reserve's interest rate, also known as the Fed Funds Rate (FFR).
"I think it's more than a global factor due to the increased expectations of a more aggressive FFR cutting by the Fed, with the influence of the government shutdown (United States)," he said to Antara in Jakarta on Friday, October 3, 2025.
Quoting Anadolu, the international credit rating agency S&P Global predicts that the Fed will cut interest rates by 25 basis points (bps) before the end of this year. Then, the interest rate relaxation will continue in 2026 by 50 bps.
The potential cut in the FFR is influenced by the U.S. government shutdown because the government has not agreed on the budget for the coming year.
"The uncertainty is still very high. Currently, it is related to the government shutdown, making it difficult for the market to see the latest U.S. economic data developments," said Rully Arya.
He said that the strengthening of the rupiah over the past five days is due to the U.S. government shutdown, which increases the likelihood of an FFR cut in October and December 2025.
Looking at domestic sentiment, he added, the government and Bank Indonesia (BI) seem to have a pro-growth attitude that will indeed affect economic stability.
Editor's Choice: Bank Indonesia Confident Rupiah Will Strengthen Gradually
Click here to get the latest news updates from Tempo on Google News
IHSG Climbs as Market Stays Indifferent to U.S. Government Shutdown
7 jam lalu
IHSG strengthens this morning as market players tend to ignore the shutdown of the United States government.
Bank Indonesia Confident Rupiah Will Strengthen Gradually
1 hari lalu
Bank Indonesia ensures it will continue to intervene in the market to stabilize the rupiah.
US Public Support for Israel Drops Significantly Two Years After Gaza Genocide
2 hari lalu
The support of Americans for Israel has significantly declined over the past two years due to the genocide in Gaza.
Tehran Says U.S. Plans to Deport Hundreds of Iranian Citizens
2 hari lalu
An official from the Iranian Foreign Ministry stated that the Trump administration plans to deport about 400 Iranian citizens.
State Banks Raise Dollar Deposit Rates; Minister Purbaya Reacts
4 hari lalu
Finance Minister Purbaya firmly emphasized that banks' decision to raise dollar deposit rates did not originate from him or his office.
Finance Minister Optimistic Indonesian Rupiah Will Rebound This Week
4 hari lalu
Finance Minister Purbaya Yudhi Sadewa is confident that the rupiah will begin to strengthen next week after plunging to Rp16,700 per U.S. dollar.
UN General Assembly: How New York Braces for the Wave of World Leaders
5 hari lalu
The bustling city of New York experiences traffic jams, roadblocks, and tightened security during the UN General Assembly, leaving some residents feeling frustrated.
UN Reinstates Sanctions on Iran Over Nuclear Program
5 hari lalu
UN sanctions will be reimposed on Iran after it fails to convince Western countries about its nuclear program.
Bank Indonesia Uses Every Instrument to Stabilize Rupiah
7 hari lalu
Bank Indonesia has spoken up after the rupiah's exchange rate fell to Rp16,700 per U.S. dollar.
Factors Behind the Indonesian Rupiah's Weakening
8 hari lalu
The Rupiah exchange rate weakened to Rp16,758 per U.S. dollar in today's trading on Thursday, September 25, 2025. Why?
