Indonesian Rupiah Slides Amid US Rate Hike Bets and Soaring Oil Prices

The US Dollar has strengthened against the Indonesian Rupiah (IDR), pushing the USD/IDR pair to around 17,700 on Monday. The rise in the greenback comes as investors bet on a quarter-point rate hike by the Federal Reserve (Fed) next week.

Data released by the Bureau of Labor Statistics showed that the US Consumer Price Index (CPI) rose 0.4% MoM in August, with a 12-month increase at 3.4%. The core CPI, which excludes volatile food and energy prices, increased by 0.3%, beating market expectations.

Analysts at HSBC note that recent data releases have shifted the global monetary policy narrative away from the US. They highlight a divergence between softer US momentum and relatively stronger performance in other major economies.