Forex
Indonesian Rupiah Weakens Amid Rising Oil Prices
The Indonesian Rupiah has weakened against the US Dollar amid rising oil prices and concerns about inflation. The USD/IDR pair continues to rise, trading at around 17,730 during Asian hours on Tuesday.
Rising energy costs have increased inflation fears in Indonesia, a net oil importer, which could strain its fiscal position. In response, investors are pricing in a higher chance of a US Federal Reserve interest rate hike this week.
According to the CME FedWatch tool, money markets now reflect over a 92% chance of a rate hike, up from around 60% just a week prior. This shift in expectations has supported the USD, which is seen as a safe-haven asset during times of uncertainty.