The Indonesian rupiah weakened as much as 0.3% to IDR 17,935 per U.S. dollar on Friday, putting it on course for its biggest weekly decline since mid-May and taking its year-to-date loss to 7%. Rising U.S. Treasury yields, a stronger dollar and expectations that the Federal Reserve will keep interest rates higher for longer weighed on the currency. Bank Indonesia held its benchmark rate at 5.75% after cumulative 100-basis-point increases between May and June, saying it would rely on market-based measures, including foreign-exchange intervention, to support the rupiah. MUFG FX strategist Lloyd Chan said coordination between Bank Indonesia and the finance ministry on next year’s financing plans could ease pressure on the domestic bond market, but would provide limited protection against a prolonged external shock. Further deterioration in global conditions could leave more adjustment to the rupiah and increase pressure to maintain tight monetary policy. The currency has been the weakest among oil-importing emerging Asian economies this year, while fuel subsidies and elevated crude prices have raised concerns about Indonesia’s fiscal health. Other regional currencies and equities traded mixed as investors also monitored a U.S.-China summit without signs of breakthroughs on artificial intelligence, trade or Taiwan.