The Indonesian rupiah rose for a second session to around IDR 17,850 per U.S. dollar on the last trading day of September, although it remained on track for an approximately 0.6% monthly decline. Bank Indonesia said its intervention would remain consistent and sustainable, with spot-market operations reduced to 30% and greater emphasis placed on NDFs, or non-deliverable forward contracts. Parliament’s passage of the 2027 Budget Bill improved fiscal clarity, while the rupiah’s trajectory remained aligned with regional peers. Gains were limited by a firm dollar supported by persistent U.S. inflation and hawkish Federal Reserve signals. August annual inflation accelerated to 3.19% because of higher food costs linked to El Niño, while elevated crude prices posed fiscal challenges for Indonesia because of its reliance on imported energy. The rupiah was nevertheless on track to strengthen about 0.6% for the quarter, recovering part of its 5.7% decline in the previous period.