Rupiah Weakens to Close at Rp 16,949 Per US Dollar Despite Briefly Touching 17,000 Level
JAKARTA — The Indonesian rupiah weakened in the spot market on Monday’s trading session (9 March 2027). The currency depreciated 0.14 per cent to Rp 16,949 per US dollar.
Meanwhile, the rupiah on the Jakarta Interbank Spot Dollar Rate (Jisdor) set by Bank Indonesia stood at Rp 16,974 per US dollar, depreciating 0.32 per cent from the previous week’s close of Rp 16,919 per US dollar.
According to currency and commodities analyst Ibrahim Assuaibi, the US dollar index strengthened on Monday amid rising geopolitical tensions in the Middle East and climbing global energy prices.
On the external front, global oil prices surged by approximately 30 per cent, breaching the US$100 per barrel mark and approaching levels last seen at the onset of the Russia-Ukraine conflict in 2022.
“Oil prices surged approximately 30 per cent, far exceeding US$100 per barrel and approaching the highest levels witnessed during the early stages of the Russia-Ukraine war in 2022,” Assuaibi told reporters on Monday afternoon.
The surge in oil prices was triggered by air strikes conducted by Israel and the United States against several Iranian oil facilities over the weekend. Iran subsequently retaliated by launching missile attacks against oil facilities in the Middle East region.
“Israeli and American air strikes targeted Iranian oil facilities over the weekend, whilst Tehran retaliated by launching missile strikes against oil facilities in Middle Eastern countries,” he explained.
Tensions escalated further after Iran reportedly attacked vessels transiting through the Strait of Hormuz, a strategically critical energy shipping route serving as a major oil supply source for Asian nations.
Disruptions to this energy distribution corridor could potentially cause global oil supply disruptions, should the Strait of Hormuz be closed for an extended period.
The geopolitical situation further intensified following Iran’s appointment of Mojtaba Khamenei as successor to Ayatollah Ali Khamenei as Iran’s Supreme Leader. This appointment is viewed as indicating that hardline factions retain control in Tehran amid the ongoing conflict with the United States and Israel.
Beyond geopolitical factors, global markets also closely monitored economic developments in Asia. Chinese government data showed that China’s consumer price index (CPI) inflation grew 1.3 per cent year-on-year in February, exceeding market forecasts of 0.9 per cent and marking the fastest growth rate in three years.
“In Asia, China’s consumer price index inflation grew 1.3 per cent year-on-year in February, according to government data. This figure exceeded forecasts of 0.9 per cent and represented the fastest growth rate in three years,” Assuaibi stated.