Jakarta. Rupiah held steady at Rp17,877 per US dollar at Thursday’s close despite mixed sentiment from MSCI’s latest assessment of Indonesia’s capital market and continued tensions in the Middle East.

The currency opened slightly weaker, down two points, or 0.01%, at Rp17,879 per dollar before recovering to its previous closing level by the end of trading on Aug. 13, 2026.

Traze Andalan Futures currency analyst Ibrahim Assuaibi said the rupiah’s stability reflected a mix of domestic and external factors.

“On the domestic side, we see that MSCI is still maintaining Indonesia’s capital market in the emerging-market category. Although there has been a downgrade, it has not yet caused the rupiah to weaken,” Ibrahim said in a statement Thursday.

He said MSCI continued to have a positive view of Indonesia’s capital market, helping limit pressure on the rupiah.

The currency was also supported by market sentiment ahead of the fit-and-proper test for Destry Damayanti, President Prabowo Subianto’s sole nominee to lead Bank Indonesia.

“The news that Acting Bank Indonesia Governor Destry Damayanti was reselected by President Prabowo was positively received by both domestic and foreign markets, which helped the rupiah remain stable at the close,” Ibrahim said.

Externally, the rupiah remained under pressure from ongoing tensions between the United States and Iran over the Strait of Hormuz. The US recently claimed to have 100% control over monitoring the strategic waterway, while Iran said the Strait remained under the authority of Iran and Oman.

Ibrahim also pointed to softer US inflation as another factor shaping expectations for the rupiah.

“Secondly, we see that US inflation, both monthly and annually, has declined, which will likely lead the US central bank to maintain its interest rate at its August meeting,” he said.

As of 4 p.m. Jakarta time, the Singapore dollar stood at Rp13,958, the Japanese yen at Rp112.16, the Australian dollar at Rp12,600 and the euro at Rp20,599.

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