Rupiah Outlook: Inflation Data and US Rates in Focus Next Week

The Indonesian rupiah is expected to trade at around Rp17,600 to Rp17,900 per U.S. dollar next week, influenced by both domestic and international factors.

Ibrahim Assuaibi, director of PT Traze Andalan Futures, said market participants are waiting for the release of inflation data due on August 29, 2026, which will give them a clearer picture of monetary policy direction and interest rates.

'Market participants tend to refrain from taking aggressive positions before seeing the official inflation figure,' Ibrahim explained, as the data is crucial for central banks in determining policy and rates.

The July trade data release by Statistics Indonesia could also raise concerns about food prices, as it reflects global and domestic supply, demand, and distribution costs. A surge in food imports might indicate declining domestic supplies or increased reliance on foreign imports, making them more expensive due to a weakening rupiah.