Rupiah Gains on Fiscal Coordination and Easing Geopolitical Tensions
The Indonesian rupiah strengthened against the US dollar on Friday, rising by 13 points or 0.07% to close at Rp 17,903 per dollar, according to Bloomberg data.
This gain was attributed to a combination of factors, including closer fiscal coordination between Indonesia's Finance Ministry and Bank Indonesia to contain pressure on the currency, as well as external developments that eased concerns over geopolitical risks.
Reports that the US and Iran were exploring a phased deal to reopen the Strait of Hormuz and lift Washington's economic blockade on Iran helped alleviate concerns over geopolitical tensions.
The rupiah also drew support from the extension of the US-China trade truce, which was set to expire in November but has now been extended to January 10, 2027. However, stronger-than-expected US economic data limited gains in the rupiah, with the S&P Global US Composite PMI rising to 58.4 in September and initial jobless claims falling below market expectations.