Jakarta. Rupiah strengthened slightly against the US dollar on Friday, supported by signs of easing geopolitical tensions and closer fiscal coordination between Indonesia’s Finance Ministry and Bank Indonesia to contain pressure on the currency.

The rupiah closed at Rp 17,903 per dollar, up 13 points or 0.07% from Thursday’s Rp 17,916, according to Bloomberg data.

Traze Andalan Futures Director and Currency Analyst Ibrahim Assuaibi said the rupiah gained as markets focused on fiscal cooperation between the Finance Ministry and Bank Indonesia to stabilize the currency.

External developments also supported the rupiah, particularly reports that the United States and Iran were exploring a phased deal that could lead to the reopening of the Strait of Hormuz and the lifting of Washington’s economic blockade on Iran.

"US-Iran talks over reopening the Strait of Hormuz and lifting the economic blockade have helped ease concerns over geopolitical risks," Ibrahim said.

The rupiah also drew support from the extension of the US-China trade truce to Jan. 10, 2027. US Treasury Secretary Scott Bessent said Washington and Beijing had agreed to extend the agreement, which had been due to expire on Nov. 10.

"Meanwhile, Federal Reserve officials have also left room for further interest rate hikes," Ibrahim said.

Stronger-than-expected US economic data, however, limited gains in the rupiah. The S&P Global US Composite PMI rose to 58.4 in September from 56.0 in August, marking the fastest expansion in more than five years and reinforcing expectations of continued inflationary pressure.

US initial jobless claims also fell to 197,000 in the week ended Sept. 19, below the market expectation of 201,000.

As of 3:59 p.m. Jakarta time, the Singapore dollar was trading at Rp 14,013, the Japanese yen at Rp 113.22, the Australian dollar at Rp 12,584 and the euro at Rp 20,400, according to Bloomberg data.

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