Rupiah closes slightly firmer as US dollar slips to Rp16,875

Rupiah closes slightly firmer as US dollar slips to Rp16,875

Jakarta, CNBC Indonesia — The rupiah managed to close the session slightly firmer against the United States dollar (US$) on Thursday, 5 March 2026. According to Refinitiv data, the Indonesian rupiah closed at Rp16,875 per US1, againof0.03. In the morning session, the rupiah had actually risen as much as 0.24% to Rp16,840 per US$. Although that gain was pared back during trading, the rupiah remained in positive territory by the close. Meanwhile, the US dollar index (DXY) at 15:00 WIB was still in positive territory, rising 0.23% to 98.993. The rupiah’s movement today was shaped by external dynamics, notably the DXY’s movements measuring the greenback’s strength against six major world currencies. The US dollar rose on Thursday after retreating from a three-month high. Tensions of the war in the Middle East continued to shake global markets and kept sentiment fragile, thereby supporting demand for the US dollar as a safe-haven asset. Previously, the dollar’s sharp rally had been tempered by hopes that the conflict would not last as long as anticipated and that oil shipments through the Strait of Hormuz could resume. However, markets remained haunted by uncertainty from the US-Israel war against Iran, now in its sixth day, after Iran launched a wave of missiles at Israel. This condition suggested capital inflows into the US dollar, which ultimately limited the room for other currencies to strengthen, including the rupiah. Domestically, markets also focused on Fitch Ratings’ decision to lower Indonesia’s credit outlook to negative on Wednesday, 4 March 2026. Nevertheless, Fitch kept Indonesia’s credit rating at BBB, still within the investment-grade category. In response, Bank Indonesia Governor Perry Warjiyo stated that affirming Indonesia’s rating at BBB reflected global confidence in Indonesia’s economic fundamentals, which remain strong. The outlook adjustment was not seen as indicating a weakening of the nation’s macro fundamentals. “The prospects for Indonesia’s economy remain strong and resilient. Indonesia’s economic strength is evident from domestic growth that remains solid amid rising global uncertainty, inflation that remains controlled including core inflation which remains low, and the rupiah’s continued strengthening facilitated by exchange-rate stabilisation policies in the offshore NDF market (off-shore) as well as spot and DNDF transactions in the domestic market,” Perry said in a statement, quoted on Wednesday, 4 March 2026.