
The rupiah weakened past 16,700 per dollar last week as markets pushed back expectations for aggressive US Fed rate cuts after strong US GDP data. Foreign investors sold Indonesian government bonds and stocks, and the currency fell about 0.9% over the week.
Analysts also pointed to doubts over Indonesia's fiscal policy direction.
Stronger US yields and a firmer dollar raise the rupiah cost of dollar-priced feed imports, which squeezes Indonesian feed buyers. Capital outflows add to downside pressure on the currency.
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