Rupiah Strengthens as US Dollar Falls to Rp16,820
Jakarta — The Indonesian rupiah opened stronger against the US dollar on Wednesday (11 March 2026).
According to Refinitiv data, the rupiah opened trading in positive territory, strengthening 0.21 per cent to Rp16,820 per US dollar. This followed a more significant appreciation of 0.47 per cent to Rp16,855 per US dollar at the close of trading on Tuesday (10 March 2026).
Meanwhile, the US Dollar Index (DXY), which measures the strength of the US dollar against six major world currencies, showed modest gains of 0.01 per cent to 98.836 as of 09:00 WIB.
The rupiah’s movement today remained influenced by geopolitical dynamics in the Middle East, which also shaped the direction of the US dollar.
The US dollar tended to move stably as market participants chose to hold positions whilst awaiting developments in the US-Israel conflict with Iran. The still-dynamic signals regarding potential conflict resolution have kept market sentiment fragile.
Global markets had previously hoped that US President Donald Trump would quickly push for an end to the conflict. However, Trump has also repeatedly issued strong threats against Iran, particularly if Tehran attempts to disrupt energy supply flows through the Strait of Hormuz.
The US dollar, which had previously strengthened following a surge in oil prices caused by the war now lasting more than a week, has begun to lose some momentum as hopes emerged that the conflict could ease more quickly. Nevertheless, market participants remain doubtful that the war will end in the near term.
On Tuesday (10 March 2026) local time, the US and Israel launched further airstrikes against Iran, which the Pentagon and Iranian sources on the ground described as among the most intense since the war began. This increased escalation has amplified risks to the global economy, especially after Iran’s Islamic Revolutionary Guard Corps stated it would block oil shipments from the Gulf region if US and Israeli attacks do not cease.
Rapid developments in the Middle East have made it difficult for market participants to calculate risks accurately. For now, many investors have chosen to exercise caution and await clarity on the direction of the conflict.
Ultimately, any movement in the US Dollar Index will influence other currencies, including the rupiah.