Gotrade News - Indonesia's rupiah weakened past 17,309 per US dollar in Wednesday morning trade on April 29, 2026. The slide came hours before the Federal Reserve's interest rate decision, scheduled for Thursday morning Indonesia time.
According to Bloomberg Technoz, the rupiah opened 0.3% lower at 17,277 per dollar before extending losses. The currency dropped 0.41% to 17,295 per dollar by 9:10 AM local time.
Key Takeaways
- Rupiah fell 0.41% to 17,295 per dollar Wednesday morning, ahead of the Fed's rate decision.
- Net foreign outflows hit US$136.1 million on Tuesday (28/04), the largest single-day exit since March 26.
- Markets expect the Fed to hold rates at 3.5%-3.75% during Powell's final meeting as chair.
Bank Indonesia's reference rate (JISDOR) moved to 17,245 per dollar from 17,277 in the prior session. The US Dollar Index (DXY) touched 98.64 at 8:45 AM local time during morning trading.
The main pressure came from Brent crude oil rising 0.59% to US$111.9 per barrel Wednesday morning. Stalled US-Iran peace negotiations triggered risk-off sentiment across regional markets.
Liputan6 reported that President Trump rejected Iran's proposal to reopen the Strait of Hormuz shipping route. The strait carries roughly 20% of the world's oil and gas supply.
The United Arab Emirates also announced its withdrawal from OPEC and OPEC+ effective May 1, 2026, according to Liputan6. This geopolitical mix is adding further pressure on emerging market currencies including the rupiah.
Doo Financial economist Lukman Leong said the rupiah may continue weakening on risk-off flows and rising oil prices. He projects the rupiah trading between 17,200 and 17,300 per dollar through the session.
Katadata noted most Asian currencies also weakened in Wednesday's morning trade. The Indian rupee fell 0.38%, Thai baht 0.31%, and Philippine peso 0.32% against the dollar.
The Japanese yen and Malaysian ringgit were exceptions, gaining 0.02% and 0.03% respectively. The regional pattern shows broad-based dollar strength across Asia today.
Bloomberg Technoz reported net foreign outflows of US$136.1 million on Tuesday (28/04). That was the largest single-day outflow since March 26, 2026 and the fourth straight session of net selling.
The Fed is scheduled to deliver its rate decision on Wednesday US time or early Thursday Indonesia time. Market consensus expects the benchmark rate to stay at 3.5% to 3.75% with no major surprises.
This meeting marks Jerome Powell's final session as Fed Chair before his term ends. Investors will focus less on the rate itself and more on Powell's tone regarding the path of future policy.
For Indonesian investors, the Fed's decision will set the direction for the dollar and the rupiah this week. A dovish outcome could open room for rupiah strength, while a hawkish tone may add selling pressure across emerging markets.
