Rupiah weakens amid investor caution ahead of Trump's address

Jakarta (ANTARA) – The rupiah exchange rate opened lower in Jakarta on Wednesday, falling 19 points or 0.11 per cent to Rp16,848 per US dollar, from Rp16,829 per US dollar previously.

The Chief Economist at Permata Bank, Josua Pardede, said that sentiment towards the rupiah was weakening as investors adopted a cautious approach ahead of a speech by US President Donald Trump.

“Market players are closely monitoring potential developments in US trade policy and further actions in the Middle East,” he told ANTARA in Jakarta on Wednesday.

Citing Xinhua, Trump is scheduled to deliver his State of the Union address on Tuesday evening (US time), which is expected to praise his achievements since taking office for his second term, amid a decline in his approval rating.

This will be Trump’s first State of the Union address since returning to office as president. In March 2025, Trump actually delivered an important speech before a joint session of Congress, but that speech was not officially designated as a State of the Union address because it took place shortly after he took office.

This highly significant State of the Union address is being delivered amid a decline in the president’s approval rating in recent months. The latest polls show that only 32 per cent of Americans say that Trump has the right priorities, while 68 per cent say that he has not paid enough attention to the country’s most important issues.

“The increased caution is supporting demand for the US dollar, which is strengthening against most major currencies, including the rupiah,” said Josua.

Based on these factors, the rupiah is projected to trade in the range of Rp16,775–Rp16,900 per US dollar.