Jakarta, ThedailyID — Indonesia’s rupiah hit a record low of Rp17,310 per US dollar this week before recovering to Rp17,229 by Friday, April 24, as global pressures and central bank intervention drove sharp market swings.
The rupiah touched its weakest level on Thursday, April 23, pressured by rising oil prices and a stronger US dollar. The currency then rebounded 0.33% on Friday, April 24, after Bank Indonesia stepped up intervention in the foreign exchange market.
Despite the late recovery, analysts said pressure on the rupiah remains significant. The currency’s movement reflects ongoing volatility linked to geopolitical risks and external market sentiment.
Chief Analyst at Doo Financial Futures, Lukman Leong, said rising crude prices and broad dollar strength fueled the sell-off.
“Throughout the week, the rupiah faced heavy pressure from higher oil prices and a stronger US dollar, repeatedly hitting record lows,” Lukman told Kontan on Friday.
He added that domestic factors offered little support, as Bank Indonesia maintained interest rates and kept its policy stance unchanged.
Bank Indonesia said it would intensify intervention to stabilize the rupiah. The move helped support Friday’s rebound and eased some concerns over further depreciation.
Markets are now watching whether the central bank can sustain that support next week.
Lukman projected the rupiah could move between Rp17,150 and Rp17,400 per dollar in the coming days, with volatility likely to remain high.
He said developments in the Middle East and oil market movements will stay key drivers. Investors are also monitoring upcoming US economic data, including first-quarter GDP and the ISM manufacturing index, for clues on the dollar’s next direction.
“If Bank Indonesia continues aggressive intervention, pressure on the rupiah may ease, with room for limited gains,” Lukman said.
The sharp swings underscore how Indonesia’s currency remains vulnerable to global shocks, even as policymakers move to contain instability.
