Rupiah Hits 18,000 as Perry Exit and Fed Jitters Take Toll

The Indonesian rupiah has fallen beyond the 18,000-per-dollar mark as investors react to Bank Indonesia Governor Perry Warjiyo's resignation and uncertainty about the US Federal Reserve's policy decision.

The currency weakened 65 points or 0.36% to Rp 18,074 per US dollar at 9:05 a.m. Jakarta time in the spot market, with Bloomberg data showing it had already fallen 46 points or 0.26% to Rp 18,009 per dollar at Monday's close.

Acting Bank Indonesia Governor Destry Damayanti has sought to reassure investors that the central bank will maintain its existing policy mix to safeguard financial system stability and support the rupiah.

The market is also anticipating the Federal Reserve's decision on interest rates, with several global brokerage firms warning that the Fed could resume raising interest rates after this month's surge in oil prices and escalating geopolitical tensions in the Middle East.