April 30, 2026 | 11:51 am
TEMPO.CO, Jakarta - The Indonesian rupiah weakened on Thursday morning by 23 points, or 0.13 percent, against the U.S. dollar, closing at Rp17,349 per dollar, down from Rp17,326 the previous day.
Permata Bank Chief Economist Josua Pardede assessed that the rupiah weakened against major global currencies during Wednesday's trading session (4/29) as investors positioned themselves ahead of the Federal Open Market Committee (FOMC) meeting.
"The cautious sentiment is also reflected in the upward trend in U.S. Treasury yields and Government Securities (SBN)," he said in Jakarta on Thursday, as reported by ANTARA.
During the April 2026 FOMC meeting, the Federal Reserve maintained its policy interest rate at 3.50 to 3.75 percent. Four members dissented on the decision, with Stephen Miran supporting a 25-basis-point rate cut. Three other members opposed including any hint of an easing bias in the official statement.
The Fed said it continues to monitor the economic implications of the situation in the Middle East and is prepared to adjust its policies as necessary.
"The market considered the statement more hawkish, which drove up U.S. Treasury yields and strengthened the U.S. Dollar Index on Wednesday," he said.
During a press conference, Fed Chairperson Jerome Powell stated that, although the chairmanship may change, he intends to remain on the Board of Governors until the end of his term.
Amid ongoing geopolitical tensions in the Middle East, government bond yields in Indonesia increased significantly as investors anticipated a more hawkish stance from the Fed.
"Concerns about inflation are also increasing in line with the rising trend in oil prices," said Josua.
Based on these factors, the estimated range for the rupiah is Rp17,275 to Rp17,400 per U.S. dollar.
Read: Analyst Highlights 'Undervalued' Narrative as Rupiah Slides to Rp17,243
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