The USD to IDR exchange rate is currently bearish, facing downward pressure.
Key drivers include:
- Anticipated interest rate cuts by the Federal Reserve may weaken the USD as monetary easing is expected in 2026.
- Recent soft inflation data has added to concerns about the USD's value.
- Indonesia's proactive measures by Bank Indonesia, including intervention in forex markets, aim to stabilize the IDR against depreciation.
The near-term trading range for USD to IDR is expected to remain stable, with movements likely contained around recent levels.
An upside risk includes potential improvements in global economic conditions, which could boost the USD. On the downside, continued decreases in USD strength due to Federal Reserve policies could push the exchange rate lower, alongside Indonesia’s measures that may effectively support the IDR.