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08/07/26
51
USD/IDR Rises as Rupiah Weakens Ahead of Fed Minutes
The USD/IDR pair edged higher in Asian trading on Wednesday, recovering after a modest decline in the previous session and hovering near 18,050. The rupiah remained under pressure after Bank Indonesia’s latest consumer survey showed that consumer confidence fell to 117.8 in June from 120.9 in May. Although the index stayed above the neutral 100 level, the decline suggested a softer domestic outlook and reduced support for the local currency.
Market participants are now waiting for the Federal Reserve’s meeting minutes due later in the day. The release is drawing unusual attention because it will be the first set of minutes under new Chairman Kevin Warsh, giving traders a potential early read on how the central bank may approach US interest rates in the months ahead. Any signal that policy could remain restrictive for longer would likely reinforce demand for the dollar.
The US currency is also benefiting from stronger safe-haven demand as geopolitical tensions intensify. Recent US airstrikes on Iran followed attacks on commercial shipping in the Strait of Hormuz, including a Qatari LNG carrier and a Saudi oil tanker. The developments have revived concerns about the security of one of the world’s most important energy routes and have encouraged investors to move toward assets perceived as more stable.
Iran has responded with a defiant stance, saying it will not yield to pressure and rejecting outside interference in the management of the Strait of Hormuz. Military officials have described the strikes on southern Iran as a serious escalation and have threatened retaliation. The heightened rhetoric has added to market unease, leaving the dollar better supported against the rupiah as traders balance domestic weakness in Indonesia with global risk aversion.
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