Jakarta, ThedailyID — The rupiah continued weakening against the US dollar, with one Indonesian bank reportedly selling the American currency close to Rp18,000.
Data cited by CNBC Indonesia showed the exchange rate at several banking services had approached Rp18,000 per US dollar during trading activity on Tuesday.
The weakening rupiah came amid rising global market uncertainty and stronger demand for the US dollar.
Analysts linked the pressure to escalating geopolitical tensions in the Middle East, higher oil prices, and continued foreign capital outflows from emerging markets.
Investors also closely monitored expectations surrounding future interest rate policies from the US Federal Reserve.
The rupiah has recently faced additional pressure alongside declines in Indonesia’s stock market and broader regional currencies.
Economists warned that a prolonged rupiah decline could increase import costs and place pressure on inflation, especially for energy and food sectors.
However, analysts noted that Bank Indonesia still has policy instruments available to stabilize the currency and maintain market confidence.
Market players are now watching for further intervention measures and upcoming economic data that could influence currency movements.
