Trump's Statement Calms Markets, Rupiah Strengthens
JAKARTA – The rupiah exchange rate at the close of trading in Jakarta on Tuesday strengthened by 86 points, or 0.51 per cent, to Rp 16,863 per US dollar from the previous close of Rp 16,949 per US dollar. Muhammad Amru Syifa, analyst at the Indonesia Commodity & Derivatives Exchange (ICDX) Research and Development division, stated that the rupiah’s strengthening was influenced by a statement from US President Donald Trump that the conflict with Iran was nearing resolution.
“This statement helped ease some investor concerns about the potential for a prolonged conflict that was previously feared could disrupt global energy supplies and dampen prospects for global economic growth,” he said in Jakarta on Tuesday (10 March 2026).
According to Kyodo, Trump said the war with Iran, which is still ongoing, is expected to “end soon”, but denied that the conflict would end this week.
Trump’s statement came after Iran selected Ayatollah Mojtaba Khamenei as its new supreme leader following the death of his father, Ayatollah Ali Khamenei, in the opening wave of combined US and Israeli strikes.
Mojtaba Khamenei is known for his close ties to the Islamic Revolutionary Guard Corps (IRGC). His ascension to power has raised concerns among most nations that the war, now in its second week, could increasingly destabilise the Middle East and directly impact the global economy.
Despite insisting that the US had achieved “unprecedented” military success, Trump expressed disappointment with Iran’s selection of a new supreme leader. “We thought this would just cause the same problems for that country,” he said.
“A correction in the US dollar index has provided room for several currencies, including the rupiah, to move more stably and tend to strengthen,” said Amru.
Markets are also closely watching the direction of the Federal Reserve’s interest rate policy, particularly after several US economic data points indicate conditions remain relatively strong. If US inflation and labour markets remain solid, he continued, the likelihood of elevated interest rates persisting longer will increase and could potentially strengthen the US dollar.
Currently, markets are awaiting the release of US inflation data, which could provide further guidance on The Fed’s monetary policy direction.
From domestic sentiment, the rise in global oil prices due to potential energy supply disruptions has also added pressure on developing country currencies, including the rupiah.
“The surge in energy prices is a concern because it has the potential to increase the government’s subsidy burden and trigger domestic inflation pressure. If geopolitical conflict persists over the long term, volatility in global financial markets could increase and may trigger capital outflows from emerging markets, ultimately placing additional pressure on the rupiah’s exchange rate,” he said.
The Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened today to Rp 16,879 per US dollar from the previous level of Rp 16,974 per US dollar.