Core Viewpoint - The Federal Reserve's hawkish stance has led to significant volatility in the Asian foreign exchange market, prompting the Bank of Indonesia to intervene to stabilize the Indonesian rupiah [1][4]. Group 1: Federal Reserve's Impact - The Federal Reserve's Chairman Jerome Powell indicated that the decision on interest rate cuts in September remains uncertain, which has driven the dollar to a two-month high, adversely affecting emerging market currencies [1][4]. - Powell's comments during the FOMC press conference did not provide guidance on a potential rate cut in September, suggesting that current interest rates are appropriate amid uncertainties regarding tariffs and inflation [4]. Group 2: Indonesian Central Bank's Actions - The Bank of Indonesia confirmed its intervention in the foreign exchange market to stabilize the rupiah, which had depreciated by 0.4% to 16,460 per dollar, marking its lowest level in over a month [1][4]. - Erwin Hutapea, the Executive Director of the Bank of Indonesia, stated that the central bank is using various tools, including spot transactions, non-deliverable forward contracts (NDF), and government bond purchases, to maintain the stability of the rupiah [4][5]. Group 3: Market Reactions - The strengthening of the dollar has put pressure on the Indonesian rupiah and other regional currencies, with concerns that strong U.S. economic performance may delay the Fed's rate cut timeline [5]. - The dollar index reached a two-month high, contributing to widespread pressure on Asian currencies, including the Indonesian rupiah [5].