Rupiah has the potential to weaken, the US dollar strengthens due to Fed sentiment

JAKARTA - The rupiah exchange rate in Monday, February 2, 2026 trading is expected to weaken against the US dollar (USD).

To note, quoting Bloomberg, on Friday, January 30, the spot rupiah exchange rate closed down 0.18 percent to Rp16,786 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of the Bank Indonesia (BI) closed down 0.06 percent to the price level of IDR16,796 per US dollar.

Doo Financial Futures analyst Lukman Leong said that the rupiah exchange rate has the potential to be pressured against the US dollar.

He added that this weakening was triggered by speculation about the appointment of Kevin Warsh by Donald Trump as a candidate for Fed Chairman, which was considered to strengthen the US dollar.

"The rupiah has the potential to weaken against the US dollar by speculation that Trump's choice, Kevin Warsh, to serve as the new Fed chairman supports the US dollar," he told VOI, Monday, February 2.

In addition, Lukman said the strengthening of the US dollar index was also driven by hawkish statements from Fed Governor Michelle Bowman.

"In addition, the US dollar index also rose supported by a more hawkish statement from the Fed Bowman," he said.

However, pressure on the rupiah is expected to be limited as market participants are still waiting for the release of Indonesia's trade and inflation data which is scheduled to be released this afternoon.

"However, the weakness will be limited, investors are turning off Indonesian trade and inflation data that will be released this afternoon," he explained.

Lukman estimates that the movement of the rupiah on Monday, February 2, 2026 will be in the range of Rp16,700-Rp16,800 per US dollar.