Rupiah Extends Losses on Risk-Off Sentiment

2026-03-02 06:33 By Farida Husna 1 min. read

The Indonesian rupiah slipped to around IDR 16,850 per dollar on Monday, down for the second session as the dollar index climbed on safe-haven demand amid mounting tensions in the Middle East.

Bank Indonesia said the U.S.

attack on Iran has intensified global risk-off sentiment and pledged to stay active in the forex market to stabilise the currency.

On fresh data, annual inflation hit a 35-month top of 4.76% in February, above the central bank’s 1-1/2%–3-1/2% target range, largely due to base effects from electricity tariff discounts last year.

Core inflation edged up to 2.63%, the strongest since May 2023.

Meantime, January’s trade surplus missed forecasts as imports jumped ahead of Ramadan and Eid al-Fitr.

Governor Perry Warjiyo has signaled further policy easing, citing a mild inflation outlook for 2026–2027 and support for President Prabowo Subianto’s pro-growth agenda.

The board last month held rates at 4.75% for a fifth straight meeting after cutting 150bps since September 2024.



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Rupiah Extends Losses on Risk-Off Sentiment
The Indonesian rupiah slipped to around IDR 16,850 per dollar on Monday, down for the second session as the dollar index climbed on safe-haven demand amid mounting tensions in the Middle East. Bank Indonesia said the U.S. attack on Iran has intensified global risk-off sentiment and pledged to stay active in the forex market to stabilise the currency. On fresh data, annual inflation hit a 35-month top of 4.76% in February, above the central bank’s 1-1/2%–3-1/2% target range, largely due to base effects from electricity tariff discounts last year. Core inflation edged up to 2.63%, the strongest since May 2023. Meantime, January’s trade surplus missed forecasts as imports jumped ahead of Ramadan and Eid al-Fitr. Governor Perry Warjiyo has signaled further policy easing, citing a mild inflation outlook for 2026–2027 and support for President Prabowo Subianto’s pro-growth agenda. The board last month held rates at 4.75% for a fifth straight meeting after cutting 150bps since September 2024.
2026-03-02
Rupiah Steady Ahead of Key Data
The Indonesian rupiah was little changed on Friday, hovering near IDR 16,760 per dollar after recent gains, as investors awaited February inflation and January trade data for fresh direction. January headline inflation accelerated to a near three-year high of 3.55% yoy, while core inflation rose to a nine-month peak of 2.45%, though both remained within Bank Indonesia’s target range. The contained price pressures reinforced expectations that policy can stay supportive. December’s trade surplus also beat forecasts, with exports outpacing imports, adding to external stability. In mid-February, Bank Indonesia kept its key rate at 4.75% for a fifth straight meeting after delivering 150bp of cuts since September 2024, but signaled scope for further easing in line with President Prabowo Subianto’s pro-growth agenda. The rupiah is set to rise about 0.7% this week and 0.2% this month, supported by solid reserves and firmer fiscal conditions, while a steady dollar index limited sharper gains.
2026-02-27
Rupiah Maintains Uptrend
The Indonesian rupiah firmed to around IDR 16,750 per dollar on Thursday, extending gains from the prior session as the dollar index slipped further amid lingering uncertainty over U.S. tariffs. Domestically, Bank Indonesia kept its benchmark rate unchanged at 4.75% earlier this month for a fifth straight meeting, after delivering 150bps cuts since September 2024. The central bank noted the move aimed to support the rupiah and enhance monetary policy transmission. It added that ample foreign reserves in January would bolster efforts to stabilize the currency, with markets awaiting February inflation and January trade data due next week. So far this week, the rupiah has gained about 0.8%, aided by improved fiscal space after tax revenue surged 30.7% yoy by end-January, reflecting lower tax refunds and better compliance. However, bets of further monetary easing limited upside amid a pro-growth stance under President Prabowo, after 2025 GDP growth fell short of the 5.2% official target.
2026-02-26