Inp.polri.go.id - Jakarta. The Indonesian rupiah slipped on Friday morning (20/1/2026) as the U.S. dollar gained strength following expectations that the Federal Reserve will maintain high interest rates for longer. The local currency opened at Rp 16,903 per dollar in Jakarta, marking a 0.05% decline from its previous close.

"The rupiah is projected to fluctuate within a narrow range today, facing pressure from global dollar dominance," said Taufan Dimas Hareva, a researcher at the Indonesia Commodity and Derivatives Exchange, as quoted by antaranews.com 

Despite the external headwinds, he noted that Indonesia’s stable economic fundamentals and Bank Indonesia’s intervention measures are expected to prevent a steeper depreciation. 

Domestic investors remain focused on the central bank's policy rate and capital inflows in the bond market to gauge the currency's resilience. Market participants are also awaiting upcoming U.S. inflation and employment data, which will likely dictate the Federal Reserve's next move and influence the rupiah's trajectory.

(mg/inp/pr/rs)