Rupiah Eases After Recent Gains

2026-04-28 05:59 By Farida Husna 1 min. read

The Indonesian rupiah inched lower to around IDR 17,250 per dollar on Tuesday, giving back part of its recent two-day strength.

The slight decline came even as the U.S.

dollar index fell further amid renewed diplomatic efforts to ease U.S.–Iran tensions.

Caution also grew ahead of key domestic releases later this week, including April inflation and March trade.

March CPI slowed to 3.48%, but upside risks linger from higher global oil prices, while February’s trade surplus was below expectations as imports surged, raising concerns over external balances.

At the same time, fiscal worries resurfaced with reports of shrinking government emergency funds and rising debt repayments, fueling fears of financial strains.

Still, losses were capped by Bank Indonesia’s firm commitment to support the currency.

The central bank last week kept rates steady for a seventh straight meeting, and Governor Warjiyo noted the rupiah remains undervalued relative to fundamentals, signaling scope for recovery.



News Stream
Rupiah Eases After Recent Gains
The Indonesian rupiah inched lower to around IDR 17,250 per dollar on Tuesday, giving back part of its recent two-day strength. The slight decline came even as the U.S. dollar index fell further amid renewed diplomatic efforts to ease U.S.–Iran tensions. Caution also grew ahead of key domestic releases later this week, including April inflation and March trade. March CPI slowed to 3.48%, but upside risks linger from higher global oil prices, while February’s trade surplus was below expectations as imports surged, raising concerns over external balances. At the same time, fiscal worries resurfaced with reports of shrinking government emergency funds and rising debt repayments, fueling fears of financial strains. Still, losses were capped by Bank Indonesia’s firm commitment to support the currency. The central bank last week kept rates steady for a seventh straight meeting, and Governor Warjiyo noted the rupiah remains undervalued relative to fundamentals, signaling scope for recovery.
2026-04-28
Rupiah Firms Further on Weaker Dollar and Stronger FDI
The rupiah strengthened to around IDR 17,230 per dollar on Monday, extending gains for a second session after recently touching a record low near 17,330. A softer U.S. dollar supported sentiment, as reports of Tehran’s new proposal to Washington on reopening the Strait of Hormuz eased geopolitical risks. Locally, Bank Indonesia last week kept its key rate at 4.75%, maintaining a pause since October and signaling confidence that its mix of forex intervention and macroprudential tools is sufficient to guard the currency. Governor Warjiyo also noted the rupiah is undervalued relative to fundamentals, suggesting scope for appreciation. Fresh data showed Q1 FDI rose 8.5% yoy, up from the prior 4.3% on enhanced inflows into downstream industries. However, gains were capped by caution ahead of inflation and trade releases this week. March CPI eased to 3.48%, but upside risks linger with higher oil prices. Meanwhile, February’s trade surplus undershot forecasts amid a surge in imports.
2026-04-27
Rupiah Edges Higher, Yet Weekly Decline Persists
The Indonesian rupiah firmed to around IDR 17,290 per dollar on Friday, inching up from a record low near 17,330 in the prior session. However, sentiment remained fragile as broad U.S. dollar strength, fueled by haven demand amid stalled U.S.–Iran peace efforts, continued to pressure emerging market currencies. Earlier this week, Bank Indonesia left interest rates unchanged for a seventh straight meeting, as expected. Governor Perry Warjiyo also pledged to step up onshore and offshore interventions, stressing the rupiah is undervalued relative to fundamentals. He noted foreign reserves of about USD 148 billion in March provided a sufficient buffer against external shocks. Yet the currency has repeatedly hit record lows this month and is on track for a fourth straight weekly fall. Still, modest net capital inflows into government bonds at the start of Q2 offered early signs of stabilization, with investors awaiting Q1 foreign direct investment data due next week for further direction.
2026-04-24