The Indonesian rupiah dipped to around IDR 17,950 per U.S. dollar on Wednesday, retreating after briefly firming below IDR 17,850 in the prior session. Pressure mounted as the dollar stayed firm and Middle East tensions dimmed hopes for a ceasefire, heightening geopolitical risks. Locally, sentiment faltered after May’s consumer sentiment fell to an eight-month low, underscoring worries over household income and economic conditions. Support from Bank Indonesia’s surprise 25-bp rate hike Tuesday quickly faded as a 32% jump in non-subsidized fuel prices took effect, stoking inflation fears. Focus now shifts to next week’s policy meeting as officials struggle to steady the rupiah, which repeatedly hit record lows. Despite hikes totaling 75bps since May and a USD 12 billion reserve drawdown this year, stabilisation efforts have had limited traction. Governor Warjiyo insists forex reserves remain sufficient, though concerns persist over fiscal strains, subsidy burdens, and new export rules.