Jakarta. Rupiah weakened past the Rp 18,000 per US dollar mark on Friday as MSCI’s proposal to downgrade Indonesia’s market status intensified concerns over market governance and trading integrity, adding to pressure from elevated oil prices and a firm US dollar.

Rupiah closed down 89 points, or 0.50%, at Rp 18,027 per dollar on Friday, compared with Rp 17,938 in the previous session.

Traze Andalan Futures director Ibrahim Assuaibi said the currency came under pressure as investors assessed MSCI’s proposal to reclassify Indonesia from an emerging market to a standalone market. The proposal reflects persistent concerns over market governance and alleged coordinated trading practices, with a final decision scheduled for June 30, 2027.

“Despite various reforms, MSCI has highlighted weak enforcement and market dysfunction,” Ibrahim said in a statement on Friday.

External factors also weighed on the rupiah, even as signs of easing geopolitical tensions in the Middle East offered some relief. US President Donald Trump was reportedly considering lifting sanctions on certain vessels in the so-called shadow fleet that transports oil and petroleum products from countries including Russia, Iran and Venezuela.

The move is intended to ease global shipping rates, which have reached record highs, a US official said on Wednesday.

However, tensions between Saudi Arabia and Yemen’s Houthi group, alongside fresh attacks on vessels in the region, continued to support elevated oil prices and underpin the US dollar.

The rupiah also faced pressure from shifting expectations over US monetary policy. Several Federal Reserve officials have indicated that an interest rate hike in the near term is not considered urgent.

“Investors are now awaiting comments from Fed Chair Kevin Warsh at the International Monetary Fund’s annual meetings in Bangkok for clues ahead of the Fed’s meeting later this month,” Ibrahim said.

According to Bloomberg data as of 3:59 p.m. Jakarta time, the Singapore dollar stood at Rp 14,078, while the Japanese yen traded at Rp 114.10. The Australian dollar was at Rp 12,547 and the euro at Rp 20,270.

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