Rupiah Edges Higher as Dollar Weakens Amid Middle East Tensions
JAKARTA, Jakartaweekly.com — The U.S. dollar weakened at the close of trading on Friday, April 24, 2026, amid global pressures and escalating geopolitical tensions in the Middle East, lending modest support to the rupiah.
The rupiah closed 57 points higher at Rp17,229 per U.S. dollar in evening trade, after weakening earlier in the session.
Market analyst and Director of PT Traze Andalan Futures, Ibrahim Assuaibi, said global financial markets remain overshadowed by tensions between the United States and Iran, which could disrupt global energy supplies.
Tensions escalated after reports that Iran’s chief negotiator had withdrawn from talks with Washington, while U.S. President Donald Trump signaled he was in no rush to reach a deal with Tehran. Hawkish remarks on potential military action in the Strait of Hormuz further weighed on market sentiment.
“This prolonged conflict is raising concerns over disruptions to global oil supply, which in turn could pressure economic stability and financial markets,” Ibrahim said in a written statement on Friday, April 24, 2026.
Despite extended ceasefires in several areas, markets see the measures as insufficient to ease uncertainty, particularly due to the impasse over reopening the strategic Strait of Hormuz.
Domestically, external pressures are also posing risks to fiscal stability and inflation, especially amid rising energy prices.
Meanwhile, he added that the government has ensured the state budget remains resilient enough to absorb the impact. The government also said excess budget reserves (Saldo Anggaran Lebih/SAL), totaling Rp423 trillion, remain available, providing fiscal space to keep the deficit below 3% of gross domestic product.
He said that Bank Indonesia reiterated it would optimize its monetary policy mix, including interventions in the offshore Non-Deliverable Forward (NDF) market, the spot market and the Domestic NDF (DNDF), to stabilize the rupiah. The central bank is also expanding foreign exchange operations, including offshore yuan-denominated transactions.
For early next week, Ibrahim expects the rupiah to trade in the range of Rp17,220 to Rp17,260 per U.S. dollar. On a weekly basis, the currency is seen moving between Rp17,180 and Rp17,400, amid persistent global uncertainty.
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