The Indonesian rupiah slid to a fresh record low of near IDR 17,600 per dollar in thin Friday trading, extending losses from the prior session as a firmer U.S. dollar and rising U.S. cost pressures reinforced bets that the Fed could keep interest rates higher for longer. For the week, the rupiah is on track for a seventh straight weekly drop, down roughly 0.5%, amid concerns over declining foreign reserves, fiscal strains, and inflation risks linked to the Iran war, which could lift energy costs despite Indonesia’s mild inflation reading in April. Caution also grew ahead of Q1 current account data, after figures swung to a deficit in Q4 due to a larger oil trade shortfall. Still, the currency’s losses were capped by speculation that Bank Indonesia may raise its key interest rate next week to 5% from 4.75%, where it has remained since October. Earlier this week, the government launched a bond stabilisation fund to support debt markets amid rising yields and persistent foreign outflows.