Rupiah Closes Weaker at 0.55%, US Dollar Rises to Rp16,855

Jakarta — The rupiah closed early-week trading with a sharp depreciation against the US dollar. Following the strengthening of the US dollar in global markets after US and Israeli strikes on Iran over the weekend.

According to Refinitiv data, on Monday (2 March 2026), the rupiah closed in negative territory with a depreciation of 0.60%, sliding to the level of Rp16,860/US$. This level marked the weakest point in the past two weeks.

The rupiah’s weakness was already evident from the start of morning trading. The currency opened 0.30% weaker at Rp16,810/US$, with downward pressure continuing until the market close this afternoon.

The rupiah’s movement today was significantly influenced by market participants’ response to escalating geopolitical tensions in the Middle East following the US and Israeli strike on Iran on Saturday (28 February 2026), which reportedly killed Iran’s Supreme Leader, Ayatollah Ali Khamenei.

Additionally, Iran reportedly launched attacks against US assets in several neighbouring countries, including the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq, and Syria.

These conditions triggered a strengthening of the US dollar in global markets. At 15:00 WIB, the US Dollar Index (DXY) recorded sharp gains of 0.84% to reach 98.429. This situation reflected market participants seeking US dollar-denominated assets, underpinning the DXY’s appreciation.

The strengthening of the dollar index ultimately placed pressure on other currencies, including the rupiah.

Domestically, the market also monitored the release of February 2026 inflation data by Indonesia’s Central Statistics Agency (BPS). The BPS recorded February 2026 inflation at 0.68% on a month-on-month basis. This inflation was reflected in the increase of the Consumer Price Index (IHK) from 109.75 in January 2026 to 110.50 in February 2026.

“In February 2026, inflation reached 0.68%, representing an increase in the consumer price index from 109.75 in January 2026 to 110.50 in February 2026,” said Ateng Hartono, Deputy Head of Distribution and Services at the BPS, during a BPS press conference on Monday (2 March 2026).

Meanwhile, on a year-on-year basis, February inflation was recorded at 4.76%. This figure marked the highest annual inflation rate since March 2023, when Indonesia’s inflation reached 4.97%.