September 10, 2026 | 05:50 pm
TEMPO.CO, Jakarta - The rupiah exchange rate weakened by 36 points (0.21 percent) to Rp17,547 per US dollar at the close of trading on Thursday, September 10, from the previous close of Rp17,511.
Muhammad Amru Syifa, from the Research and Development division of the Indonesia Commodity & Derivatives Exchange (ICDX), said that the weakening rupiah is driven by a "wait-and-see" attitude among investors ahead of the release of the United States Producer Price Index (PPI) and Consumer Price Index (CPI).
“The rupiah’s movement is being influenced by investor sentiment, which leans towards a wait-and-see approach before taking new positions. The market is currently awaiting the release of the U.S. PPI on Thursday evening and the U.S. CPI on Friday (Sept. 11) evening,” he said on Thursday, as quoted by ANTARA.
These two economic data points are considered key indicators for gauging the direction of Federal Reserve (The Fed) policy. This situation has prompted greater caution among market participants, causing the rupiah to decline despite the fact that underlying sentiment remains relatively positive.
Furthermore, the weakening rupiah also reflects consolidation following a significant strengthening the previous day.
“Although domestic sentiment remains positive and the US dollar is generally still under pressure, the rise in the 10-year U.S. Treasury yield to around 4.84 percent has once again boosted the appeal of dollar-denominated assets and curbed the rupiah’s appreciation,” said Amru.
On the other hand, he added, oil prices remaining above US$100 per barrel due to escalating geopolitical tensions are also heightening concerns regarding global inflation and the interest rate outlook.
“In the short term, the rupiah still has the potential to extend its gains and is expected to trade within the range of Rp17,450–Rp17,600 per US dollar. A move toward the Rp17,450 level becomes more likely if the dollar’s weakness persists, whereas U.S. inflation data exceeding expectations could once again put pressure on the rupiah,” he added.
Meanwhile, Bank Indonesia's Jakarta Interbank Spot Dollar Rate (JISDOR) strengthened today to Rp17,536 per US dollar, up from the previous Rp17,552.
Read: European Gas Prices Hit Highest Level in More Than Three Years
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