One Month of US-Iran War: Rial Weakens Against Dollar, Gains Slightly from Rupiah

One month into the war between the United States (US) and Iran, the pressure on Iran’s financial markets shows no signs of easing. The most evident reflection of this is the exchange rate of the Iranian rial, which remains deeply undervalued both against the US dollar and when compared to the rupiah.

Iran’s currency is no longer falling as dramatically as in the early phase of the year. However, during the ongoing war, the rial has stayed at extremely weak levels. This indicates that the armed conflict offers no room for recovery for Iran’s currency; instead, it sustains high pressure amid economic and geopolitical uncertainty.

According to Refinitiv data, at the start of the war on 28 February 2026, the US dollar exchange rate against the Iranian rial was at 1,313,863 rials per US$1. By the latest close on Friday (4 April 2026), it stood at 1,316,135 rials per US$1.

This means that over approximately one month of war, the Iranian rial has weakened by about 0.17% against the US dollar.

In percentage terms, the depreciation appears slight. However, far more critically, the rial remains at a highly vulnerable level, above 1.31 million per US dollar.

In other words, the past month’s war has not yet triggered a new wave of extreme weakening, but it has also failed entirely to lift Iran’s currency out of its deep slump.

Throughout the war period, the Iranian rial’s movement against the US dollar has been confined to a narrow range, yet persistently weak. The worst rate reached 1,321,780 rials per US$1 on 11 March 2026, while the strongest level in that period was only 1,310,814 rials per US$1 on 25 March 2026.

This means that daily fluctuations during the war have not been too volatile, but all movements have occurred in an already highly pressured position.

Against the Rupiah, the Rial Has Strengthened Slightly During the War

Unlike its performance against the US dollar, the Iranian rial has actually strengthened slightly against the rupiah over the one-month war period.

Based on Refinitiv data, on 27 February 2026, one Iranian rial was equivalent to Rp0.0128. By the close of trading on Friday (3 April 2026), its value had risen to Rp0.0129 per rial.

This increase shows that during the war period, the Iranian rial strengthened by about 0.78% against the rupiah.

However, this strengthening is very limited. The rial’s exchange rate against the rupiah remains in an extremely low range, around Rp0.0128-Rp0.0129 per rial. In essence, although the rial has technically gained slightly, its level still indicates that Iran’s currency remains very weak.

For Iran’s economy, this situation is clearly burdensome. Such a deeply weak exchange rate amplifies the price pressures on imported goods, worsens inflation, and erodes public confidence in the domestic currency.

In wartime conditions, pressures like these become far harder to contain due to heightened uncertainty, capital flight tendencies, and sustained high demand for safe-haven assets like the US dollar.