Rupiah Still Soft Despite First Weekly Gain in Four

2026-03-27 06:03 By Farida Husna 1 min. read

The Indonesian rupiah slipped toward IDR 16,950 per dollar on Friday, extending losses for a second straight session as a firm dollar index underscored ongoing geopolitical risks from the Middle East conflict and its potential impact on oil, inflation, and global growth.

Sentiment was also cautious ahead of key domestic releases next week, including March inflation and February trade data.

Inflation quickened to 4.76% in February, a near three-year high and above Bank Indonesia’s 1-1/2% to 3-1/2% target range.

Meanwhile, January imports surged ahead of Ramadan and Eid al-Fitr, straining the trade balance.

As a net oil and gas importer, Indonesia remains exposed to rising energy costs.

Still, the rupiah booked its first weekly gain in four weeks, up around 0.2%, lifted by confidence in fiscal buffers to absorb near-term shocks.

Officials stressed no immediate changes to fuel prices or subsidy policies, while Bank Indonesia prepares new measures from April 1st to curb rupiah speculation.



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Rupiah Still Soft Despite First Weekly Gain in Four
The Indonesian rupiah slipped toward IDR 16,950 per dollar on Friday, extending losses for a second straight session as a firm dollar index underscored ongoing geopolitical risks from the Middle East conflict and its potential impact on oil, inflation, and global growth. Sentiment was also cautious ahead of key domestic releases next week, including March inflation and February trade data. Inflation quickened to 4.76% in February, a near three-year high and above Bank Indonesia’s 1-1/2% to 3-1/2% target range. Meanwhile, January imports surged ahead of Ramadan and Eid al-Fitr, straining the trade balance. As a net oil and gas importer, Indonesia remains exposed to rising energy costs. Still, the rupiah booked its first weekly gain in four weeks, up around 0.2%, lifted by confidence in fiscal buffers to absorb near-term shocks. Officials stressed no immediate changes to fuel prices or subsidy policies, while Bank Indonesia prepares new measures from April 1st to curb rupiah speculation.
2026-03-27
Rupiah Steady as BI Maintains Stability Focus
The Indonesian rupiah held near IDR 16,900 per dollar on Thursday, little changed from the prior session, as traders awaited key data next week, including March inflation and February trade figures. Inflation rose to 4.76% in February, a near three-year high and above Bank Indonesia’s target, while January’s imports surged ahead of Ramadan and Eid al-Fitr, weighing on the trade balance. Currency stability remains a priority, with Bank Indonesia reaffirming intervention and tighter regulations to manage capital flows and curb volatility. From April 1, forex purchases above USD 50,000 will require documentation, while domestic NDF sales limits will be doubled to USD 10 million to deter speculation. These steps follow last week’s move to hold rates at 4.75% for a sixth straight meeting after 150bps of cuts since September 2024. Jakarta also pledged to keep the budget deficit within 3%. Globally, the dollar index remained firm around 99.6, amid uncertainty over efforts to end the Iran war.
2026-03-26
Rupiah Edges Higher amid Market Reopening and Fiscal Reassurance
The Indonesian rupiah firmed below IDR 16,900 per dollar on Wednesday, rebounding from a brief dip to 16,930 in the prior session, as the dollar index eased amid reports that the U.S. is pursuing talks with Iran to de-escalate the Middle East conflict. Markets also reopened after a week-long Eid break with improved sentiment, supported by Finance Minister Purbaya Yudhi Sadewa’s reassurance that there is no plan to breach Indonesia’s 3% budget deficit cap, with contingency measures reserved for a major crisis. Still, rising energy costs stoke fears of an inflation shock, given Indonesia’s reliance on Middle Eastern oil. Against this backdrop, Bank Indonesia is set to roll out measures on April 1 to curb rupiah speculation: forex purchases above USD 50,000 will require documentation, while domestic NDF sales limits will be doubled to USD 10 million. The central bank last week held rates at 4.75%, underscoring its priority on currency and financial stability.
2026-03-25