Breaking News! Rupiah Slumps as US Dollar Reaches Rp16,900

Jakarta, CNBC Indonesia - The rupiah opened the last trading week weaker against the United States dollar on Friday (6 March 2026) as the greenback moved in global markets. Refinitiv data show the rupiah opening at Rp16,900 per US, down0.15. Meanwhile, the U.S. dollar index (DXY) at 9:00 a.m. WIB was seen in the red, down 0.35% to 98.965. Earlier, DXY had risen notably, up 0.55% to 99.317. The rupiah’s movement toward the weekend will continue to be influenced by external sentiment, especially the dynamics of the US dollar in global markets. The dollar tended to weaken in early Friday trading, but remained on track for the biggest weekly gain in more than a year. The rally is supported by growing demand for safe-haven assets amid escalating conflict in the Middle East. Hope for a de-escalation had previously appeared but faded after tensions rose again. This keeps market participants cautious and favouring safer assets, including the US dollar. Prolonged Middle East tensions are seen as potentially keeping inflation elevated, strengthening the US dollar, and narrowing the chances of rate cuts by the US central bank. At the same time, risk-off sentiment still leaves room for the dollar to stay firm in the short term, especially as energy-market risk premia remain high. The strength of the US dollar in global markets makes room for other currencies, including the rupiah, to strengthen less; instead, this condition opens up greater downside risk for emerging-market currencies, including the rupiah.