{
    "success": true,
    "data": {
        "id": 1644258,
        "msgid": "reasons-behind-rupiahs-fall-to-rp-17-000-per-us-dollar-1774878756",
        "date": "2026-03-30 20:20:52",
        "title": "Reasons Behind Rupiah's Fall to Rp 17,000 per US Dollar",
        "author": "Gita Amanda",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Economy",
        "summary": "The Indonesian rupiah weakened to Rp 17,002 per US dollar amid market concerns over escalating tensions in the Middle East, particularly following Houthi attacks on Israel in support of Iran against the US and Israel. Analysts highlight the potential for a new front in the conflict in the Red Sea, alongside Iran's readiness for a US ground invasion and ongoing uncertainties in US-Iran negotiations under President Trump. Additionally, weakening US consumer sentiment and expectations of Federal Reserve interest rate hikes due to high energy prices are contributing to the rupiah's depreciation, shifting market bets away from rate cuts.",
        "content": "<p>The rupiah exchange rate experienced a correction, breaching the Rp\n17,000 per US dollar level. The weakening of the rupiah occurred as\nmarkets grew wary of the potential escalation of war tensions in the\nMiddle East, following the Houthi group\u2019s decision to join Iran in\nsupporting actions against the US and Israel.<\/p>\n<p>Citing Bloomberg, the rupiah weakened by 22 points or 0.13 percent to\nRp 17,002 per US dollar at the close of trading on Monday (30\/3\/2026).\nIn the previous session, the Garuda currency stood at Rp 16,979 per US\ndollar.<\/p>\n<p>\u201cThe market remains cautious about the potential escalation of the\nIran war after the Iran-backed Houthi group based in Yemen attacked\nIsrael over the weekend. The Houthi group could open a new front in the\nwar, given their capability to launch attacks in the Red Sea,\u201d said\nCurrency and Commodities Analyst Ibrahim Assuaibi in his statement on\nMonday (30\/3\/2026).<\/p>\n<p>Ibrahim explained that Iran has indicated readiness to face a US\nground invasion, particularly after weekend reports showed Washington\ndeploying thousands of troops to the Middle East.<\/p>\n<p>US President Donald Trump told reporters that negotiations with Iran\nare progressing well and an agreement may be reached soon. However, he\ndid not specify a clear deadline, while also warning of further attacks\non Tehran.<\/p>\n<p>\u201cTrump last week extended the deadline for strikes on Iran\u2019s energy\ninfrastructure until early April. Iran has largely rejected the idea of\ndirect talks with the US since the war began at the end of February,\u201d he\nclarified.<\/p>\n<p>Ibrahim continued that the US economic conditions and expectations of\ninterest rate policies from the US central bank, the Federal Reserve,\nare also contributing to external sentiments driving the rupiah\u2019s\nweakening.<\/p>\n<p>In terms of economic data, the University of Michigan revealed that\nAmerican households are becoming pessimistic about the economic\nsituation. Consumer sentiment in March fell from 55.5 to 53.3, below the\nexpected 54. Expectations for inflation over the next 12 months jumped\nfrom 3.4 percent in February to 3.8 percent, while the five-year figure\nremained unchanged at 3.2 percent.<\/p>\n<p>\u201cThe market currently anticipates the Federal Reserve\u2019s next move to\nbe an interest rate hike, given the high energy price scenario.\nAccording to the CME FedWatch Tool, the market expects no rate cuts this\nyear and is betting on a 50 percent chance of a rate hike by the end of\n2026, compared to projections of two rate cuts before the US-Iran war\nbegan,\u201d he explained.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/reasons-behind-rupiahs-fall-to-rp-17-000-per-us-dollar-1774878756",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}