Rupiah Near Record Low as Safe-Haven Demand Lifts Dollar

2026-03-09 06:55 By Farida Husna 1 min. read

The Indonesian rupiah weakened toward IDR 16,970 per dollar on Monday, marking a third straight decline and edging closer to its record low of IDR 16,985 reached in January, as the dollar index climbed to a three-month high amid persistent safe-haven demand with the Iran war entering its second week and showing little sign of easing.

Domestic sentiment was further pressured after Moody’s and Fitch downgraded Indonesia’s credit outlook to negative, raising concerns over fiscal credibility and policy consistency.

On the data front, consumer confidence slipped in February after hitting a one-year high in January, reflecting rising cost pressures ahead of Eid al-Fitr.

Meanwhile, foreign exchange reserves fell to a three-month low, underscoring strain on external buffers.

Still, hopes that authorities will prioritize currency stability helped limit losses, as sharp rupiah depreciation risks fueling imported inflation, triggering capital outflows, and unsettling bond markets.



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