Rupiah Weakens, Gold Nears $5,000

RRI.CO.ID, Jakarta - The Indonesian Rupiah is weakening to 17,000 per US dollar on Thursday, 19 February 2026, as the US central bank signals a more hawkish stance. In the latest FOMC Minutes, there were two different views among policymakers. However, it can be concluded that the Federal Reserve is likely to delay cutting interest rates. A looser monetary policy may only happen at the end of the year if supported by strong economic data.

The Fed has maintained a hawkish tone in several recent meetings. So far, gold prices have not been heavily affected by the Fed’s unclear policy direction. Investors are still waiting for stronger signals about future interest rate decisions.

In morning trading, global gold prices rose to $4,974 per troy ounce. This is equal to about 2.71 million rupiah per gram. The increase shows that investors are still interested in gold amid global uncertainty.

Today, gold prices may face pressure because the Fed is still far from cutting rates. The market expects the Fed to keep interest rates steady for now. Higher interest rates usually reduce the appeal of gold.

The Fed’s firm stance has also pressured the Rupiah. In the morning trading session, the Rupiah weakened to 16,920 per US dollar. The currency is moving closer to the psychological level of 17,000.

The weaker Rupiah could exert downward pressure on the Indonesian stock market. At the opening session, the Jakarta Composite Index (IHSG) was still able to rise to 8,357. The gain came as most Asian stock markets showed positive performance in early trading.

The IHSG is projected to move in the range of 8,300 to 8,370 today. Meanwhile, the Rupiah is expected to weaken above the psychological level of 17,000 per US dollar. Market participants will closely watch global economic data and signals from the Federal Reserve.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)