The Indonesian rupiah slipped toward IDR 17,750 per U.S. dollar on Thursday, extending its decline to six sessions as the dollar index reached a seven-week high. The move followed the U.S. Federal Reserve’s first rate increase in three years and its signal that further tightening this year remained possible to contain persistent inflation. Domestic attention is shifting to Bank Indonesia’s policy meeting next week. The central bank held its key rates at 5.75% for a second consecutive month in August after cumulative tightening of 100 basis points since May. Higher oil prices and potential El Niño effects are adding to inflation risks, while policymakers balance the need to maintain an adequate interest-rate differential with efforts to support the rupiah. Elevated global yields and cautious foreign investor sentiment could continue weighing on Indonesian assets. The rupiah has fallen around 0.8% this week, reversing gains recorded over the previous six weeks.