KBRN, Jakarta: The Indonesian rupiah weakened against the US dollar on Monday, November 3, 2025, as hawkish statements from several Federal Reserve officials reinforced expectations of continued high interest rates, causing investors to reassess currency positions.

According to Lukman Leong, a currency analyst at Doo Financial Futures, the rupiah’s decline follows remarks by Federal Reserve leaders signaling a cautious approach to interest rates.

"The rupiah weakened against the US dollar, which strengthened again following hawkish statements from Fed officials, namely Jeff Schmid (President, Federal Reserve Bank of Kansas City), Lorie Logan (President, Federal Reserve Bank of Dallas), and Beth Hammack (President, Federal Reserve Bank of Cleveland)," Lukman said in Jakarta on Monday, November 3, 2025, as quoted by antaranews.com.

At the opening of Monday’s trading in Jakarta, the rupiah fell by 7 points, or 0.04 percent, to IDR 16,638 per US dollar from IDR 16,631 per US dollar.

Schmid noted that the US labor sector remains stable and inflation is still high. Logan echoed similar concerns and opposed any Fed interest rate cuts unless inflation declines. Hammack also emphasized that high interest rates are still necessary to bring inflation down.

Meanwhile, citing Anadolu, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, supported interest rate cuts, stressing that US monetary policy remains restrictive even after a rate reduction.

On the domestic front, Indonesia’s inflation is projected to rise slightly to 2.7 percent, still within Bank Indonesia’s target range, leaving room for potential rate cuts. "September is expected to record a surplus of 4.79 billion US dollars," Lukman added. ***