Rupiah Closes Stronger at Rp 16,800 Amid Uncertainty Over US Tariff Policy

The Indonesian rupiah strengthened 29 points to Rp 16,800 per US dollar at the close of trading on Tuesday (25 February 2026). The appreciation of the rupiah occurred amid uncertainty over US tariff policy.

“The United States has begun implementing temporary global import tariffs of 10 per cent on Tuesday, with the Trump administration seeking to increase these to 15 per cent. This action has triggered uncertainty over global trade and inflation,” said currency and commodities analyst Ibrahim Assuaibi in a statement on Tuesday (25 February 2026).

The tariff action follows a ruling by the US Supreme Court last week that struck down broad import duties previously imposed under emergency powers. That decision prompted Washington to reintroduce tariffs under alternative legal authority.

Ibrahim noted that geopolitical tensions remained a concern. Iran’s Deputy Foreign Minister stated that Tehran was prepared to take necessary steps to reach an agreement with the United States. The two sides will hold the third round of talks on Thursday in Geneva amid escalating tensions over the potential for military confrontation between Washington and Tehran.

However, Ibrahim continued, expectations suggest that US interest rates will remain elevated. Boston Federal Reserve President Susan Collins said on Tuesday that interest rates are likely to remain unchanged for some time. This is because the latest economic data show improvement in the labour market, whilst inflation risks persist, according to Bloomberg.

“Chicago Federal Reserve Chairman Austin Goolsbee rejected expectations of monetary policy easing, arguing that interest rates must remain unchanged because inflation remains above the Federal Reserve’s 2 per cent mandate. Atlanta Federal Reserve President Raphael Bostic echoed this stance and stressed the necessity of keeping inflation as the primary focus,” he explained.