Indonesian Rupiah Stuck in Range Due to Global Monetary Tightening

The Indonesian rupiah (IDR) is showing resilience due to stable inflation and proactive Bank Indonesia policy, according to Commerzbank analysts.

Bank Indonesia's cautious stance balances growth support with currency stability, providing a solid foundation for the IDR. However, external pressures continue to weigh on its upside potential.

The strength of the US dollar, driven by the Federal Reserve's rate path, remains a key constraint for emerging market currencies, including the IDR. As a result, Commerzbank expects the rupiah to trade within a range with limited appreciation potential.