Indonesia’s rupiah hovered around IDR 17,900 per U.S. dollar on Friday after reaching the IDR 18,000 level earlier this week, extending its decline for a third consecutive week. The currency remained pressured by a strong dollar index near an 18-month high, amid expectations of further Federal Reserve tightening as U.S. inflation stays elevated and Middle East uncertainty adds to market risks. Bank Indonesia Governor Destry Damayanti attributed the rupiah’s weakness to global conditions, changing capital flows and vulnerabilities in external-sector fundamentals. Domestic September headline inflation accelerated to 3.28% year on year, a three-month high, as food prices remained elevated partly because of El Niño disruptions. The rupiah was down about 0.1% for the week. Stronger-than-expected August trade data had provided some support, with exports rising 6.72% and imports increasing 19.09%, while Bank Indonesia continued supporting liquidity and currency stability through secondary-market bond purchases and interventions in spot foreign exchange, DNDF and offshore NDF markets. Traders are awaiting September foreign-exchange reserves, consumer confidence and August retail-sales data next week.