US-Israel Attack on Iran Causes Rupiah to Open Weaker at Rp 16,838 per US Dollar

JAKARTA – The Indonesian rupiah weakened in spot market trading on Monday, 2 March 2026, opening at Rp 16,838 per US dollar, down 0.30 per cent from the previous week’s close of Rp 16,787 per US dollar.

The rupiah’s depreciation occurred amid escalating conflict in the Middle East following military strikes by Israel and the United States on strategic targets in Iran.

The majority of regional currencies recorded declines in morning trading. The South Korean won posted the steepest depreciation at 0.80 per cent, whilst the Philippine peso fell 0.60 per cent. The Thai baht weakened 0.46 per cent, whilst the Malaysian ringgit declined 0.29 per cent.

Pressure also affected the Taiwan dollar, which weakened 0.29 per cent, the Japanese yen, which fell 0.18 per cent, the Singapore dollar, which weakened 0.17 per cent, and the Chinese yuan, which corrected 0.12 per cent.

The Hong Kong dollar was the sole Asian currency to strengthen against the US dollar, though gains were minimal at 0.01 per cent.

Geopolitical uncertainty typically prompts global investors to shift funds towards safe-haven assets such as the US dollar and US government bonds, placing pressure on emerging market currencies, including the rupiah.

“The rupiah is expected to weaken against the US dollar amid risk-off sentiment from escalating Middle East conflict,” said Lukman when contacted by Kompas.com.

These efforts aim to restrain excessive volatility and maintain market confidence in macroeconomic stability. “However, Bank Indonesia is expected to intervene,” he added.

On technical grounds, the rupiah is expected to move within the range of Rp 16,750 to Rp 16,900 per US dollar in the short term.