Rupiah Predicted to Weaken Due to the Fed's Hawkish Stance and US Economic Data

JAKARTA - The rupiah exchange rate on Friday, August 22, 2025, has the potential to weaken against the United States (US) dollar.

Citing Bloomberg, on Thursday, August 21, 2025, the spot rupiah closed 0.10 percent weaker at Rp16,288 per US dollar. Meanwhile, the rupiah exchange rate, according to Bank Indonesia's (BI) Jakarta Interbank Spot Dollar Rate (Jisdor), closed slightly higher by 0.05 percent at Rp16,283 per US dollar.

Doo Financial Futures analyst Lukman Leong predicts that the rupiah will weaken against the US dollar.

He stated that the strengthening of the US dollar was driven by hawkish statements from the Fed Chairman, who did not support interest rate cuts.

"The rupiah is expected to weaken against the US dollar, which was strengthened by hawkish statements from Kansas Fed President Jeffrey Schmid regarding inflation risks and Cleveland Fed President Beth Hammack, who did not support interest rate cuts," he said in a statement on Friday, August 22.

He added that the strengthening of the US dollar was also supported by stronger-than-expected PMI data and the US housing sector.

Lukman stated that the rupiah's movement on Friday, August 22, 2025, is projected to move in the range of IDR 16,250 to IDR 16,400 per US dollar.