Rupiah Retreats Further on Soft Forex Reserves Data

2026-03-06 05:50 By Farida Husna 1 min. read

The Indonesian rupiah dipped for a second session to around IDR 16,940 per dollar on Friday, pressured by a firm U.S.

dollar as safe-haven demand stayed elevated amid escalating Middle East tensions.

For the week, the currency is set to fall around 0.9%, weighed by Fitch Ratings’ downgrade of Indonesia’s outlook to negative from stable, citing rising policy uncertainty and eroding credibility.

Fresh data added to caution, with February forex reserves down to a three-month low, pointing to some pressure on the country’s external buffers.

Inflation also accelerated to 4.76% yoy, a near three-year high and exceeding Bank Indonesia’s target of 1-1/2% -3-1/2%, driven by base effects.

That said, Governor Perry Warjiyo expects inflation to remain mild in 2026–2027, leaving scope for further easing after 150bps of cuts since September 2024.

Still, weakness was limited as the central bank remained committed to exchange rate stability, pledging decisive intervention in spot and forward markets.



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Rupiah Retreats Further on Soft Forex Reserves Data
The Indonesian rupiah dipped for a second session to around IDR 16,940 per dollar on Friday, pressured by a firm U.S. dollar as safe-haven demand stayed elevated amid escalating Middle East tensions. For the week, the currency is set to fall around 0.9%, weighed by Fitch Ratings’ downgrade of Indonesia’s outlook to negative from stable, citing rising policy uncertainty and eroding credibility. Fresh data added to caution, with February forex reserves down to a three-month low, pointing to some pressure on the country’s external buffers. Inflation also accelerated to 4.76% yoy, a near three-year high and exceeding Bank Indonesia’s target of 1-1/2% -3-1/2%, driven by base effects. That said, Governor Perry Warjiyo expects inflation to remain mild in 2026–2027, leaving scope for further easing after 150bps of cuts since September 2024. Still, weakness was limited as the central bank remained committed to exchange rate stability, pledging decisive intervention in spot and forward markets.
2026-03-06
Rupiah Slips Ahead of February Forex Reserve Data
The Indonesian rupiah weakened to around IDR 16,900 per dollar on Thursday as the U.S. dollar firmed on upbeat economic data, while tensions in the Middle East entered a sixth day, supporting safe-haven demand. As a net oil and gas importer, Indonesia remains exposed to rising energy costs, with authorities reportedly weighing possible domestic fuel price adjustments after the closure of the Strait of Hormuz, a key global oil shipping route. Inflation hit a near three-year high of 4.76% in February, beyond Bank Indonesia’s 1-1/2%–3-1/2% target range, due to base effects from last year’s electricity tariff discounts. Governor Perry Warjiyo said inflation should remain manageable in 2026–2027, leaving room for further policy easing after 150bps of rate cuts since September 2024. To support the rupiah, the central bank has stepped up intervention in both spot and forward markets. Investors now await February foreign reserve data due Friday after January’s decline from a nine-month high.
2026-03-05
Rupiah Weakness Persists on Safe-Haven Flows
The Indonesian rupiah slid past IDR 16,900 per dollar on Wednesday, marking a fourth straight session of losses as a firmer U.S. dollar index drew support from safe-haven demand amid an escalation of the conflict in the Middle East, now in its fifth day. As a net oil and gas importer, Indonesia is vulnerable to rising energy prices, with heightened geopolitical risks potentially pressuring the rupiah and adding upside risks to inflation. The annual inflation accelerated to a 35-month high of 4.76% in February, exceeding the 1-1/1%–3-1/2% target range, mainly due to base effects from last year’s electricity tariff discounts. Meanwhile, Bank Indonesia Governor Perry Warjiyo expressed confidence that inflation will stay mild in 2026–2027, leaving room for further policy easing after 150bps of rate cuts since September 2024. Still, losses were capped by the central bank’s renewed pledge to continue bold and consistent intervention in forward and spot markets to safeguard rupiah stability.
2026-03-04