Renewed Middle East tensions and elevated US yields push USD/IDR above 18,000, offsetting bond inflows and pressuring the currency.
The Indonesian rupiah weakened past 18,000 against the USD, driven by renewed Middle East geopolitical tensions and elevated US Treasury yields. USD/IDR rose 0.5% in recent trading, extending losses amid persistent external pressures.
Foreign inflows into Indonesian government bonds and SRBI instruments have provided some support, but ongoing net equity outflows continue to tilt risks toward further depreciation. The currency led regional losses as investors weighed broader market uncertainties.
Analysts caution that selective regional currencies, particularly the rupiah, remain vulnerable to sustained external headwinds. The balance of risks suggests continued weakness unless inflows stabilize or geopolitical tensions ease.