Rupiah Holds at Rp17,992 per US Dollar: How Will Fed Policy Affect It?
The rupiah traded within a narrow range on Wednesday (21 October 2026). After strengthening at the close of the previous session, the Indonesian currency held steady amid developments in US policy and global uncertainty.
According to trading data, the rupiah opened flat on Wednesday morning at Rp17,992 per US dollar, unchanged at 0.00 per cent. It was at the same level as Tuesday’s (20 October 2026) close, when the currency had strengthened from Rp18,046 per US dollar.
The rupiah’s gains in the previous session were influenced by developments in US sanctions policy towards Russia. However, market participants are still facing several external factors that could affect currency movements, including conflict in the Middle East and the direction of interest-rate policy at the US central bank, the Federal Reserve (the Fed).
Currency analyst and PT Traze Andalan Futures director Ibrahim Assuabi said the rupiah strengthened on Tuesday in response to the US lifting sanctions and tariffs on Russia. “The executive order issued by [US President Donald] Trump on Friday night (16 October) lifted key US sanctions and tariffs related to Russia, including duties on goods from the country and penalties for parties buying Russian oil and gas,” he said in a written statement in Jakarta on Tuesday.
According to a report by Anadolu, Trump issued an executive order concerning the implementation of a new law on sanctions against Russia, exempting tariffs and several sanctions from its provisions. The policy had previously included a 500 per cent increase in tariffs on Russian goods.
The order also set out an additional 100 per cent tariff on goods from the five largest importers of Russian oil and gas if they made new purchases on or after 18 October. Similar provisions applied to goods from five countries deemed to play the greatest role in facilitating the evasion of sanctions related to Russian oil.
Trump exempted the tariffs on the grounds of US national interest and submitted a formal certification to Congress. The exemption will remain in effect until the president or US secretary of state determines that further action is necessary.