29.04.202604:43:37UTC+00Rupiah Under Pressure as Debt Strains, Data Risks Loom

The Indonesian rupiah weakened beyond IDR 17,300 per US dollar on Wednesday, extending losses for a second consecutive session as fiscal concerns intensified. Local media reported that Jakarta may be facing funding constraints, with emergency reserves being rapidly depleted amid rising debt repayments.

Investor caution also increased ahead of key domestic releases this week, including April CPI and March trade data. While inflation eased to 3.48% in March, upside risks remain due to higher global oil prices. In February, the trade surplus came in below expectations as imports jumped, adding to external pressures on the currency.

More immediate stress has emerged from declining foreign exchange reserves, which in March fell to their lowest level in nearly two years. Market participants also appeared to discount Bank Indonesia’s recent support signals after the central bank left its policy rate unchanged for the seventh straight meeting, prompting questions about the effectiveness of its policy stance.

On the global front, the US dollar index was steady ahead of the Federal Reserve’s policy decision later today, widely expected to be Jerome Powell’s final meeting as chair before his term expires in May.