# What Is the Impact of the Federal Reserve's Latest Rate Hike on Indonesia? | Indonesia Investments

> The Federal Reserve raised its policy rate to 1.50-1.75% at its March 21, 2018 meeting, the highest since 2008, and raised its 2018 US GDP growth forecast to 2.7%. It signaled two more hikes in 2018 and three in 2019, and Southeast Asian stock indexes rose the next day.

- Date: 2018-03-22 · published 2018-03-22T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/66316-what-is-the-impact-of-the-federal-reserve-s-latest-rate-hike-on-indonesia
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md)

## Why it matters

Higher US rates and stronger US growth support the dollar and draw capital from emerging markets, pressuring currencies such as the rupiah and raising import costs for feed ingredients. The rate path points to continued dollar strength.

## Read by commodity

- DXY: bullish ▲
- USDIDR: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2016-11-02 | [The Federal Reserve looks ready to roll with an interest rate hike in December](https://feedsoft.ai/events/73752-the-federal-reserve-looks-ready-to-roll-with-an-interest-rate-hike-in-december.md) | -0.6% | +3.2% |
| DXY | 2018-03-19 | [What to expect from the Federal Reserve rate meeting \| IG South Africa](https://feedsoft.ai/events/65909-what-to-expect-from-the-federal-reserve-rate-meeting-ig-south-africa.md) | -1.2% | -1.3% |
| DXY | 2016-12-15 | [Optimistic Federal Reserve Hikes Rates](https://feedsoft.ai/events/73656-optimistic-federal-reserve-hikes-rates.md) | +1.6% | +1.1% |
| DXY | 2022-02-23 | [The market has adjusted its views of how the Federal Reserve will raise interest rates](https://feedsoft.ai/events/42642-the-market-has-adjusted-its-views-of-how-the-federal-reserve-will-raise.md) | +1.0% | +1.2% |
| DXY | 2018-09-29 | [Fed rate hike won’t have much impact on Việt Nam](https://feedsoft.ai/events/63320-fed-rate-hike-won-t-have-much-impact-on-viet-nam.md) | +0.7% | +1.8% |

## Sources

- indonesia-investments.com: https://www.indonesia-investments.com/news/todays-headlines/what-is-the-impact-of-the-federal-reserve-s-latest-rate-hike-on-indonesia/item8680

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.