Rupiah edges higher to close at Rp18,135 against US dollar
The currency recovered from an intraday low as bank economists pointed to the possibility of further monetary tightening by Bank Indonesia.
Indonesia’s rupiah gained 0.03 per cent against the US dollar on 3 November 2026, ending at Rp18,135 per US dollar, according to Refinitiv data. It had closed the previous session at Rp18,140.
The currency weakened to Rp18,165 per US dollar during trading before recovering. At 15:00 Western Indonesian Time, the US dollar index, which tracks the currency against six major counterparts, was down 0.06 per cent at 101.688.
BCA’s economics team said rupiah weakness, foreign capital outflows and imported inflation risks could prompt Bank Indonesia to tighten monetary policy further. The team also identified concerns over a possible MSCI reclassification of Indonesia’s stock market as another source of pressure on foreign capital flows.
Permata Bank’s economists forecast a 25-basis-point increase in November 2026, taking the BI-Rate to 6.00 per cent. Their forecast also considered the possibility of a Federal Reserve rate rise in December, which they said could put additional pressure on the rupiah and encourage Bank Indonesia to preserve the interest-rate differential.
Separately, S&P Global data showed Indonesia’s manufacturing Purchasing Managers’ Index rose to 54.0 in October 2026 from 52.4 in September.
