Rates probably need to go above 10 percent and relatively soon or the currency will keep weakening.

Interest-rate differentials are beneficial for the dollar. Greenspan said rates are going to continue to go up and the economic outlook is favorable.

The dollar still looks robust against most of the major currencies. As we get closer to the next Fed decision, the market’s going to be tempted to price in more and more rate increases.

Until you get tighter monetary policy in Indonesia, the currency will remain under downward pressure. Weakness in the currency and the rally in oil over the past couple of weeks have just compounded the inflationary...