Ahead of BI Rate Announcement, Rupiah Strengthens to Rp16,965 per Dollar
Jakarta — The rupiah opened stronger against the US dollar during morning trading on Tuesday, 17 March 2026, as the market awaited the announcement of Bank Indonesia’s (BI) Board of Governors meeting regarding the benchmark interest rate.
According to Refinitiv data, the rupiah opened in positive territory, strengthening by 0.12% to Rp16,965 per dollar. This gain reversed the previous session’s weakness, when the rupiah closed down 0.30% at Rp16,985 per dollar.
Meanwhile, the US Dollar Index (DXY) at 09:00 WIB was recorded at 99.921, up 0.23%. This contrasted with the previous trading session, when the index had fallen sharply by 0.65% to 99.712.
The rupiah’s movement today is expected to be significantly influenced by Bank Indonesia’s policy decision, which will be announced later in the day. The market remains confident that BI will hold its benchmark rate steady.
A CNBC Indonesia consensus survey of 13 financial institutions and organisations shows uniform expectations. All respondents forecast that BI will maintain the BI Rate at 4.75% at this month’s meeting.
Bank Indonesia is expected to continue holding interest rates to preserve rupiah stability whilst ensuring inflation remains under control.
This assessment aligns with Juniman, Chief Economist of Bank Maybank Indonesia, who believes BI will maintain interest rates in March 2026 amid continued rupiah pressure.
“We expect Bank Indonesia to maintain the BI Rate at 4.75% in March 2026, owing to sustained pressure on the rupiah stemming from global financial market uncertainty and the escalating geopolitical tensions between the United States, Israel and Iran,” Juniman said.
On the external front, the rupiah has actually benefited from weakness in the US Dollar Index during yesterday’s market close. This condition suggests that market participants are reducing dollar holdings, creating room for other currencies, including the rupiah, to strengthen.
Investors have adopted a cautious stance at the start of this week as they await a series of interest rate decisions from major global central banks, against the backdrop of US-Israel-Iran conflicts.
At least eight central banks are scheduled to hold policy meetings this week, including the Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan. Market focus is centred on how policymakers assess the impact of soaring oil prices on inflation and economic growth.