Indonesian rupiah fluctuates following Federal Reserve interest rate hike

Indonesian rupiah Federal Reserve interest rate monetary policy US dollar index global energy supply

The Indonesian rupiah has experienced significant volatility following the Federal Reserve's decision to raise interest rates by 25 basis points to a range of 3.75% to 4.00%. This move, the first since July 2023, has strengthened the US dollar and pressured the rupiah, which closed at Rp 17,753 per US dollar on September 17, 2026.

Federal Reserve Chair Kevin Warsh indicated that further monetary tightening may be necessary to address persistent inflation. This stance has contributed to market uncertainty, though some relief emerged from reports of dialogue between the US and Houthi groups in Yemen, which mitigated fears of global energy supply disruptions.

Domestically, the rupiah showed signs of recovery at the start of trading on September 18, reaching Rp 17,710. Analysts are closely watching Bank Indonesia's upcoming Board of Governors Meeting on September 22-23, 2026. While some suggest Bank Indonesia has sufficient room to maintain its current status quo due to previous aggressive rate hikes, the broader economic landscape remains influenced by US monetary policy and geopolitical tensions in the Middle East.

Entities

Bank Indonesia · Donald Trump · Federal Reserve · Kevin Warsh · Suahasil Nazara

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] The Indonesian rupiah strengthened to Rp 17,710 per US dollar at the start of trading on September 18, 2026. www.cnbcindonesia.com
[● 4 SOURCES] The Indonesian rupiah closed at Rp 17,753 per US dollar on September 17, 2026. www.jawapos.com · mediaindonesia.com · economy.okezone.com · www.viva.co.id
[○ 1 SOURCE] President Donald Trump called for the Federal Reserve to reduce interest rates to 1% or below. mediaindonesia.com
[● 2 SOURCES] Bank Indonesia will hold a Board of Governors Meeting on September 22-23, 2026. www.jawapos.com · www.viva.co.id
[● 3 SOURCES] Fed Chair Kevin Warsh suggested further interest rate hikes may be necessary to curb inflation. www.jawapos.com · mediaindonesia.com · economy.okezone.com
[● 4 SOURCES] The Federal Reserve raised interest rates by 25 basis points to a range of 3.75% to 4.00%. www.jawapos.com · www.cnbcindonesia.com · mediaindonesia.com · economy.okezone.com
[● 2 SOURCES] Dialog between the US and Yemen's Houthi group has mitigated fears regarding global energy supply disruptions. www.jawapos.com · economy.okezone.com
[○ 1 SOURCE] The Dow Jones Industrial Average increased by 316.14 points on September 17, 2026. katadata.co.id