JAKARTA - The Indonesian rupiah opened at Rp16,776 per US dollar on Monday, February 2, and is currently facing near-term pressure after President Donald Trump’s nomination of Kevin Warsh as Federal Reserve chair. 

Doo Financial Futures analyst Lukman Leong told Indonesia’s state-owned agency Antara the rupiah “could weaken against the U.S. dollar” as the dollar’s strength bites, and traders are watching Indonesian data releases for direction. The near-term technical range being cited by dealers remains in the mid-Rp16,700s to mid-Rp16,800s. 

“Although Warsh is Trump's choice, he is seen as having experience at the Federal Reserve and is not expected to immediately comply with Trump's wishes to cut interest rates,” Leong said. 

An even weaker rupiah could mean higher prices at home, weaker purchasing power, and costlier imports. It could hurt households and migrant families, while increasing the rupiah value of remittances from Indonesians overseas.

Forbes ranks the world’s weakest currencies in early 2026 based on how many units are needed to buy one U.S. dollar. 

The Lebanese pound sits at the bottom of the ranking after years of economic collapse, followed by other heavily devalued currencies, with Indonesia’s rupiah also included because of its low face value against the dollar although it doesn’t necessarily indicate economic strength. 

On January 20, Indonesia’s rupiah already hit a record intraday low (about Rp16,985/USD) despite a softer dollar, driven mainly by domestic worries over bigger fiscal deficits and threats to central bank independence after President Prabowo’s government nominated his nephew to a senior Bank Indonesia post. 

Indonesia’s House of Representatives (DPR RI) has officially approved Thomas Djiwandono as a Deputy Governor of Bank Indonesia (BI) for the 2026–2031 term, confirming his appointment during a plenary session following a fit-and-proper test in Commission XI.

Trump nominated former Fed governor Kevin Warsh to replace Jerome Powell as Federal Reserve chair when Powell’s term ends in May 2026. Warsh, a Hoover Institution fellow and former Fed governor (2006–2011) who was the youngest governor in history, would need Senate confirmation and his appointment could pull the Fed closer to the White House.