Rupiah Weakened by Hawkish Fed Signals

The Indonesian rupiah is expected to weaken against the U.S. dollar in September 2026, according to Mirae Asset Sekuritas Indonesia Senior Market Analyst M. Nafan Aji Gusta Utama.

This prediction comes as hawkish signals from Federal Reserve Chair Kevin Warsh weigh on the currency.

In a recent speech at the Jackson Hole Symposium, Warsh said U.S. inflation remains above the Federal Reserve's 2 percent target, standing at 3.7 percent over the past 12 months and 4.1 percent over the past six months.

Nafan stated that the rupiah's volatility this month will also depend on upcoming U.S. economic data, particularly inflation and labor market figures, ahead of the Federal Open Market Committee (FOMC) meeting.