Rupiah Strengthens by 86 Points Following Donald Trump's Statement
The rupiah-to-US-dollar exchange rate closed stronger during Tuesday (10 March 2026) trading. The rupiah’s appreciation was driven by market optimism following a statement by US President Donald Trump indicating that the conflict with Iran would soon end.
Based on market data at the close of trading in Jakarta on Tuesday evening, the rupiah moved stronger by 86 points, or 0.51 per cent, to 16,863 per US dollar. This position represents an improvement compared to the previous close recorded at 16,949 per US dollar.
Muhammad Amru Syifa, Research and Development at Indonesia Commodity & Derivatives Exchange (ICDX), stated that the rupiah’s appreciation was significantly influenced by US President Donald Trump’s statement regarding geopolitical conflict in the Middle East.
“The statement helps alleviate some investor concerns about the potential for prolonged conflict, which had previously been feared to disrupt global energy supplies and pressure prospects for global economic growth,” Amru said in Jakarta on Tuesday (10 March).
Citing a Kyodo report, Donald Trump stated that the war with Iran, currently ongoing, is estimated to end soon. However, he denied that complete resolution would occur this week.
Trump’s optimistic statement emerged amid a heated political situation in Iran. Iran has just elected Ayatollah Mojtaba Khamenei as its new Supreme Leader. Mojtaba replaces his father, Ayatollah Ali Khamenei, who died in the first wave of combined US-Israeli strikes.
Mojtaba Khamenei is known to have very close ties with the Islamic Revolutionary Guard Corps (IRGC). His election sparked global concerns that the war, now entering its second week, would increasingly destabilise the Middle East region.
Trump himself expressed disappointment with the new leader’s election. “We think this will only cause the same problems for that country,” Trump said, though he maintained that the US had achieved significant military successes.
From a technical perspective, Amru explained that a correction in the US dollar index provided room for developing-country currencies, including the rupiah, to move more stably.
However, the market remained cautious about the direction of Federal Reserve interest rate policy. If US inflation data and labour market conditions remained solid, the possibility of interest rates remaining higher for longer would increase again, potentially strengthening the US dollar once more.
“Rising energy prices are also a concern as they have the potential to increase the government’s subsidy burden and trigger domestic inflation pressure. If geopolitical conflict continues long-term, global financial market volatility could trigger capital outflows,” Amru concluded.
Meanwhile, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) on Tuesday (10 March) also recorded strengthening to 16,879 per US dollar from the previous day’s position of 16,974 per US dollar.
The rupiah’s exchange rate at the opening of Tuesday trading in Jakarta moved stronger by 63 points, or 0.37 per cent, to 16,886 per US dollar.