Rupiah Exchange Rate Plunges to 17,000 per US Dollar
The rupiah exchange rate weakened 76 points or 0.45 per cent to 17,001 per US dollar during today’s trading. The rupiah’s depreciation is concurrent with increasing risk-off sentiment in global markets driven by crude oil prices breaching the US$100 per barrel threshold.
According to Lukman Leong, a currency analyst at Doo Financial Futures, market pressure on the rupiah is triggered by concerns regarding the impact of sharply elevated crude oil prices, which threaten to weigh on the global economy and drive up inflation.
“The rupiah is estimated to weaken against the US dollar due to deteriorating risk-off sentiment driven by crude oil prices exceeding US$100 per barrel, which is feared to have a substantial impact on the global economy and inflation,” said Lukman in Jakarta on Monday, 9 March 2026, as quoted by Antara news agency. He predicted the rupiah would trade in a range of 16,900 to 17,050 per US dollar today.
The spike in crude oil prices has occurred amid escalating geopolitical tensions in the Middle East region. The conflict between the United States and Israel with Iran has been reported to have spread across various areas, triggering concerns about disruptions to global energy supplies.
Additionally, world oil prices have surged due to uncertainty following the appointment of Mojtaba Khamenei as Iran’s new supreme leader, succeeding his father Ayatollah Ali Khamenei, who was reported to have died. The appointment of a figure known to be close to hardline groups strengthens market perception that Iran is unlikely to ease tensions in its conflict with the US and Israel in the near term.
The escalation of conflict has also impacted the strategic energy shipping route through the Strait of Hormuz, triggering a spike in global oil prices. At 07:50 WIB, WTI crude oil prices surged 20.81 per cent to US$109.82 per barrel, whilst Brent oil climbed 18.17 per cent to US$109.53 per barrel.
The surge in world oil prices has intensified concerns about global inflationary pressure, which in turn weighs on the currencies of developing nations, including the Indonesian rupiah’s exchange rate.