Indonesian Rupiah holds losses following BI rate decision

Bank Indonesia decided to keep its benchmark interest rate unchanged at 5.75%.
US Dollar strengthens as the Fed signals another potential rate hike before year-end.
The CME FedWatch Tool indicates an 89.2% probability of a December rate increase.

Akhtar Faruqui FXStreet

USD/IDR loses ground for the second successive day, trading around 17,850 during European hours on Wednesday. The pair holds losses as the Indonesian Rupiah (IDR) remains subdued following the release of Bank Indonesia (BI) interest rate decision.

Bank Indonesia has opted to keep its benchmark interest rate unchanged at 5.75%. Central bank officials noted that the rate hikes implemented in May and June were pre-emptive, forward-looking measures designed to counter global economic developments. BI emphasized its use of innovative policies to manage ongoing global uncertainty, maintaining that the current rate level is adequate for now. Furthermore, the central bank highlighted its commitment to fostering economic growth and supporting current business momentum.

Global economic growth remains subdued in 2026, with projections holding steady at 3% and global inflation expected to average around 4%. Against this backdrop, monetary policy continues to tighten globally, with the potential for further US rate hikes. In contrast, domestic economic growth remains solid. To navigate this environment, measures to stabilize the Rupiah will be reinforced, alongside the strategic optimization of policy instruments to attract foreign capital inflows.

The downside of the USD/IDR pair could be restrained as the US Dollar (USD) gains ground on the back of a hawkish policy outlook from the Federal Reserve (Fed). Following a recent 25 basis point increase that brought the benchmark interest rate target to the 3.75%–4.00% range, Fed policymakers have signaled that another rate hike remains on the table before the end of the year.

Financial markets are actively pricing in this trajectory, with the CME FedWatch Tool showing nearly an 89.2% probability of a December rate increase. Traders turn their focus toward the preliminary US PMI data scheduled for release later on Wednesday.

Dollar stays supported as Fed rhetoric outweighs softer energy and risk backdrop

Strategists at ING highlight that the Dollar “continues to show very good resilience to lower energy prices and a risk-friendly environment,” arguing that this is “another sign that the Fed story is dominant, and the hawkish Fedspeak is enough to keep USD in demand.” They note that Richmond Fed President Thomas Barkin, who becomes a voter in 2027, reinforced that message yesterday, “arguing that a single rate hike may not be enough to bring inflation under control,” underscoring why the currency remains underpinned despite more benign market conditions.

Economic Indicator

Bank Indonesia Rate

Interest Rate Decision is announced by the Bank Indonesia. Monitary policy refers to the actions undertaken by a country's monetary authority, central bank or government to achieve certain national economic goals. It is based on the relationship between interest rates at which money can be borrowed and total supply of money.

AUD/USD jumps to 0.7050, fresh one-month top after hot Australian CPI

AUD/USD attracts buyers for the second straight day on Wednesday, rising to a fresh high since September 23 during the Asian session. A hot Australian CPI print reaffirmed bets for an imminent RBA rate hike in November and boosted the Australian Dollar. Meanwhile, the US Dollar pauses after a three-day rally to a near two-week high ahead of the crucial FOMC rate decision, lending additional support to the currency pair.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold extends pullback from weekly top, further below $4,050 as focus remains on FOMC

Gold extends its retracement slide from the weekly high touched during the Asian session, falling further below $4,050 heading into the European session and ahead of the key central bank event. The US Federal Reserve is scheduled to announce its policy decision later today and is widely expected to keep rates unchanged. Hence, the focus will be on the accompanying policy statement and Fed Chair Kevin Warsh's comments during the post-meeting press conference.

Zcash's bullish momentum mounts on steady ETF inflows, retail confidence

Zcash extends steady recovery above $1,300 on Wednesday, approaching a key resistance near $1,373. Grayscale’s ZEC-focused Exchange-Traded Fund sees persistent buying pressure, with six straight days of inflows, including more than $3 million on Tuesday.

FOMC outlook: Why keeping rates unchanged might not be enough

Tomorrow's FOMC meeting could be quite interesting, even if the Federal Reserve decides to leave interest rates unchanged. According to the latest market expectations, there is currently a 92.8% probability that rates will remain at 3.75–4.00%, while the probability of another 25 basis point increase stands at just 7.2%.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.