The rupiah opened weaker against the US dollar on Tuesday (27/10), slipping to Rp 18,137 per US$, down 2 points, or about 0.03 percent, from the previous close of Rp 18,145 per US$, according to Bloomberg spot data.
Geopolitics and outflows cited
Lukman Leong, analyst at Doo Financial, said rupiah weakness is being influenced by a geopolitical situation that has not faded, pointing to reports from the Middle East, including potential US strikes on Iran in coming days alongside diplomatic efforts toward regional peace. He also pointed to foreign fund outflows from the domestic stock market as a weight on the currency. Leong projected the rupiah trading in a range of Rp 18,100 to Rp 18,200 per US$ on Tuesday.
Bank Indonesia’s board of governors meeting the previous week had flagged high global volatility, including US inflation above target and higher-for-longer rate expectations tied to Fed policy, as challenges facing the rupiah.
Bank Indonesia stays in market
Governor Destry Damayanti told reporters in Jakarta on 26/10 that Bank Indonesia remains in the market, depending on supply and demand, and continues to monitor movements. She said rupiah moves past Rp 18,100 per US$ represent ordinary volatility, and that the central bank will always stay alert in the market.
Destry had earlier said, at a press conference on 19/10 following an economic limited meeting at Istana Merdeka, that Bank Indonesia stabilises the rupiah through spot and non-deliverable forward intervention along with hedging cost incentives launched since the end of June 2026.
Inflows via swap and domestic non-deliverable forward instruments since the hedging incentive launched have reached an estimated US$8 billion to US$9 billion.
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