The Indonesian rupiah rebounded below IDR 17,750 per U.S. dollar on Friday, ending a six-session losing streak as lower oil prices reduced imported-inflation concerns. The currency nevertheless remained on track to decline about 0.7% for the week, potentially ending six consecutive weeks of gains, while the dollar index held near 100.2 after reaching a seven-week high. The Federal Reserve had unanimously raised its policy rate by 25 basis points to 3.75%-4%, supporting the dollar and keeping pressure on emerging-market currencies. Domestic concerns included August headline inflation of 3.19%, food-price volatility, Indonesia’s July 2026 external debt of $453.4 billion, and fiscal uncertainty following the finance minister transition. Bank Indonesia is seeking to preserve an adequate interest-rate differential with the United States while supporting rupiah stability and economic growth, and will hold its policy meeting next week after leaving borrowing costs unchanged for a second consecutive month in August.