Rupiah Stands Firm Against MSCI Downgrade
The Indonesian rupiah has defied the recent downgrade of Indonesia's capital market by MSCI, holding steady at Rp17,877 per US dollar on August 13, 2026. The currency initially opened slightly weaker but recovered to its previous closing level by the end of trading.
Traze Andalan Futures analyst Ibrahim Assuaibi attributed the rupiah's stability to a mix of domestic and external factors. On the domestic side, MSCI's continued positive view of Indonesia's capital market has helped limit pressure on the currency.
Ibrahim also pointed to the reselection of Acting Bank Indonesia Governor Destry Damayanti by President Prabowo Subianto as positively received by both domestic and foreign markets, supporting the rupiah's stability. Externally, ongoing tensions between the US and Iran over the Strait of Hormuz and softer US inflation have been other factors shaping expectations for the rupiah.