Thursday morning, Rupiah and IHSG rise in unison

JAKARTA, KOMPAS.com - The Jakarta Composite Index (IHSG) and the rupiah strengthened on the opening of Thursday’s trading (5 March 2026), after both financial instruments had corrected at Wednesday’s market close.

Based on data from the Indonesia Stock Exchange (BEI), the IHSG rose 157.353 points, or 2.08 percent, to 7,734.417. Earlier at the close on Wednesday, the index plunged 362.70 points, or 4.57 percent, to 7,577.06.

The IHSG opened at 7,695.347 and briefly moved to a high of 7,765.613.

The index’s strength was mirrored by a dominance of stocks in the green zone.

A total of 582 shares advanced, while 80 declined, and 67 were unchanged.

In terms of trading activity, the trading volume reached 9.329 billion shares, with a value of Rp 5.031 trillion. The trading frequency was 547,934 transactions.

The rupiah appreciated 12 points, or 0.07 percent, to Rp 16,879 per US dollar at the opening of trading this morning.

Do Financial Futures currency analyst, Lukman Leong, said the rupiah is likely to strengthen against the US dollar as global sentiment improves, driven mainly by hopes for de-escalation of the Middle East conflict after reports that Iran signalled willingness to resume talks.

The expectation that geopolitical tensions would ease supports increased risk appetite among investors in developing country assets, including Asian currencies like the rupiah.

“Rupiah is likely to strengthen against the US dollar amid improving sentiment from hopes of de-escalation of the Middle East conflict following news that Iran signalled its willingness to return to the negotiating table,” Lukman said when contacted by Kompas.com.

In times of global uncertainty, geopolitical developments often influence capital flows and currency movements.

As the risk of conflict recedes, investors tend to re-enter risk assets that had been shunned when tensions escalated.

On the other hand, the movements of the US dollar remain influenced by global dynamics such as energy prices, inflation, and US interest rate policy.

A softening geopolitical tension could curb the dollar’s strength which had previously been supported by demand for safe-haven assets.

The softer tensions thus open room for developing-country currencies to strengthen, albeit only modestly.

Taking these sentiments into account, the rupiah is expected to move within a range of Rp 16,850 to Rp 16,950 per US dollar in the short term.