Jakarta, ThedailyID — The Indonesian rupiah closed at Rp18,036 per US dollar on Friday. The currency strengthened as investors reduced exposure to the greenback ahead of key US economic data.
The rupiah gained 13 points from the previous session. Traders largely focused on the upcoming US labor market report, which could influence future Federal Reserve policy.
Across Asia, several regional currencies also advanced against the dollar. China’s yuan, Singapore’s dollar, and the Philippine peso all posted gains during the day.
However, market sentiment remained mixed. South Korea’s won and Malaysia’s ringgit weakened as investors assessed global economic and geopolitical developments.
Analysts said uncertainty in the Middle East remained a major market concern. Recent military activity around the Persian Gulf and the Strait of Hormuz renewed concerns over energy supplies and trade routes.
As a result, investors closely monitored oil prices and broader market sentiment.
Meanwhile, attention shifted to the latest US Nonfarm Payrolls report. Economists expect the data to provide fresh clues about the strength of the American economy.
A weak jobs report could strengthen expectations for monetary easing. That outcome may place additional pressure on the US dollar and support emerging-market currencies, including the rupiah.
On the domestic front, investors also reviewed the latest outlook from the Organization for Economic Co-operation and Development (OECD). The organization lowered Indonesia’s 2026 growth forecast to 4.7% from 4.8%.
The OECD cited higher energy costs and softer labor market conditions. It also warned that global uncertainty could slow economic activity next year.
Moreover, the OECD expects inflationary pressures to increase. The organization forecasts Indonesia’s inflation rate will rise to 3.4% in 2026 from 1.9% in 2025.
Despite those concerns, Indonesia continues to benefit from stable macroeconomic fundamentals and resilient domestic demand. Bank Indonesia has also maintained its commitment to supporting currency stability.
Analysts expect the rupiah to remain sensitive to overseas developments. They are closely watching US data, Federal Reserve signals, and geopolitical risks.
For now, the local currency has recovered some ground. However, traders expect volatility to persist as global uncertainty continues to shape financial markets.
