Escalating US-Iran tensions drive safe-haven demand for USD, lifting USD/IDR to near 17,920 amid stalled diplomatic talks.
USD/IDR climbed to 17,920 during early European trading, marking its third consecutive day of gains. The pair advanced as the US Dollar rebounded from daily losses, fueled by rising geopolitical risks between the US and Iran.
Diplomatic efforts to revive an interim deal remain stalled, with no progress reported on implementation timelines. The Trump administration is intensifying economic pressure on Iran, including expanded sanctions and a potential naval blockade to curb oil exports.
Indonesia’s fiscal outlook remains stable, with a 23% year-over-year surge in tax revenue supporting a 2026 deficit target below 3% of GDP. Bank Indonesia’s leadership transition may provide continuity, potentially aiding the Rupiah’s recovery.