Rupiah Falters Ahead of the Weekend as US Dollar Rises to Rp16,900

Jakarta — The rupiah closed under pressure against the United States dollar at the close of the week’s final trading session on Friday, 6 March 2026, according to Refinitiv data. The currency finished 0.15% weaker at Rp16,900 per US.Sincethismorning′ssessionopened, therupiahhadalreadybeensofteratthesamelevelastheclose.However, duringtradingtherupiahbrieflyweakenedfurthertoRp16, 930perUS, before trimming part of its losses.

Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major currencies, was down 0.31% at 99.017 as of 15:00 WIB. Yet in the previous session, the DXY had surged 0.55%.

The rupiah’s weakness today was driven by external sentiment, particularly the dynamics of the US dollar in global markets. The dollar tended to move lower in Friday morning trade but remained on track for the week’s biggest rise in more than a year. This was supported by rising demand for safe-haven assets amid the escalation of the conflict in the Middle East.

Hope for a de-escalation previously emerged but faded again as tensions rose. The situation is seen as keeping inflation high, strengthening the dollar, and reducing the chances of policy rate cuts by the US central bank. At the same time, risk-off sentiment continues to give room for the dollar to stay firm in the short term, especially as energy-market risk premia stay high.

This condition limits the room for other currencies to strengthen, including the rupiah. Conversely, it opens up greater downside risk for emerging-market currencies, including the rupiah.

Nevertheless, Bank Indonesia (BI) continues to reinforce rupiah stability, both through policy in offshore non-deliverable forward (NDF) markets and via interventions in the domestic spot and DNDF markets.