The Indonesian rupiah slipped past IDR 17,700 per U.S. dollar on Wednesday, extending its decline to five consecutive sessions as the dollar index reached a one-month high ahead of the Federal Reserve’s policy decision. Markets widely expect the Fed to deliver its first rate hike in around three years, supporting the greenback and weighing on emerging-market currencies. Domestic headwinds include weak factory activity in August, fragile household sentiment and slowing retail-sales growth, while headline inflation accelerated to 3.19% in August. Crude oil rose above $100 per barrel amid escalating Middle East tensions, increasing pressure on Indonesia as a net oil importer and complicating inflation and fiscal management. Elevated global yields and cautious foreign investor sentiment have added to pressure on Indonesian assets. Suahasil Nazara, who replaced Purbaya Yudhi as finance minister in a surprise reshuffle, has pledged budget discipline including adherence to the 3% deficit cap. Bank Indonesia will hold its next policy meeting next week after leaving its benchmark rate unchanged for a second consecutive month in August, following cumulative tightening of 100 basis points since May.