The Indonesian Rupiah depreciated against the US dollar in trading today, driven by increasing worries over the country’s economic stability. Market analysts point to rising inflation figures and the potential for Bank Indonesia to raise interest rates as key factors contributing to the currency’s weakness.

Investors are closely monitoring upcoming economic data releases, particularly inflation reports, for signals regarding the central bank’s likely policy response. A more hawkish stance from Bank Indonesia could help to stabilize the Rupiah, but it could also dampen economic growth.

The Rupiah’s performance reflects broader anxieties about the Indonesian economy’s resilience in the face of global economic headwinds, including rising energy prices and tightening monetary policy in developed economies.