Rupiah weakens under pressure from high oil price risks

Jakarta (ANTARA) - The rupiah exchange rate against the US dollar weakened by 5 points, or 0.03 per cent, at the close of Friday’s trading, reaching Rp17,758 per US dollar compared to the previous close of Rp17,753 per US dollar.

Rully Nova, an analyst at Bank Woori Saudara, assessed that the slight weakening of the rupiah was influenced by the risks of oil prices remaining at high levels.

“The strengthening of government bonds is still overshadowed by the risk of oil prices remaining at levels above the State Budget (APBN) assumptions,” he told ANTARA in Jakarta on Friday.

Quoting Anadolu, Brent crude oil for November delivery fell 1.3 per cent to $103.40 per barrel.

Expectations regarding the discovery of alternative routes for oil shipments from West Asia to global markets contributed to the decline in oil prices, although concerns persist regarding the conflict between Saudi Arabia and Ansarullah Yemen.

Furthermore, increasing tensions in the Strait of Hormuz contributed to oil prices returning to three-digit levels. According to market sources, several oil shipments scheduled for delivery to Europe in September were cancelled on 15 September.

Other sentiment stemmed from the hawkish stance of the Federal Reserve, which pushed the US dollar index above 100 despite the downward trend in oil prices.

“The Fed’s policy stance of tightening with high acceleration until the end of this year. Currently, market participants’ projections for a Fed interest rate hike in October are already above 50 per cent,” said Rully.

Investors are also anticipating the results of the Bank Indonesia (BI) Board of Governors Meeting next week. BI is scheduled to hold its Monthly Board of Governors Meeting on 22-23 September 2026.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (JISDOR) from Bank Indonesia moved stronger to the level of Rp17,745 per US dollar from the previous Rp17,753 per US dollar.