Fed Rate Required To Rise, Rupiah Estimated To Strengthen To Rp16,200 Per US Dollar

US and Rupiah dollars (Photo: Antara)

JAKARTA - The rupiah exchange rate in trading Monday, August 25, 2025, will have the potential to move higher against the United States (US) dollar.

To note, citing Bloomberg, on Friday, August 22, 2025, the rupiah spot exchange rate closed down 0.39 percent to the level of Rp. 16,351 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.35 percent to a price level of Rp. 16,340 per US dollar.

Doo Financial Futures analyst Lukman Leong said that the Rupiah movement is expected to strengthen against the US dollar.

"The rupiah has the potential to strengthen against the US dollar which weakened sharply following Powell's speech at Jackson Hole which was relatively less hawkish," he told VOI, Monday, August 25.

He added that the speech increased the prospect of cutting interest rates by the Fed.

Lukman said that the movement of the rupiah on Monday, August 25, is projected to move in the range of Rp. 16,200 per US dollar to Rp. 16,300 per US dollar.