Rupiah Potentially Strengthens Amid Trump's Intervention Concerns To The Fed

JAKARTA - The rupiah exchange rate in trading on Thursday, August 28, 2025, is estimated to have the potential to strengthen against the United States (US) dollar.

To note, citing Bloomberg, on Wednesday, August 27, 2025, the rupiah spot exchange rate closed down 0.42 percent to the level of Rp. 16,368 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.48 percent to a price level of Rp. 16,355 per US dollar.

Doo Financial Futures analyst Lukman Leong projects that the rupiah has the opportunity to strengthen against the US dollar.

"The rupiah is expected to strengthen against the US dollar which turned under pressure by the return of concerns about Trump's intervention in the Fed following a lawyer for Fed Governor Lisa Cook who plans to sue Trump," he told VOI, Thursday, August 28.

In addition, he also added that the dovish stance of New York Fed official John Williams regarding plans to cut interest rates was also a factor in weakening the US dollar.

From the domestic side, Lukman assessed that the demonstrations planned to take place today have the potential to reduce market positive sentiment. However, the impact on the rupiah is not expected to be significant, unless there is riots or anarchic actions.

Lukman projects that the movement of the rupiah on Thursday, August 28, will move in the range of Rp. 16,300 per US dollar to Rp. 16,400 per US dollar.