Rupiah Edges Toward Rp 18,000 as Riyadh Attacks Rattle Markets
Jakarta. Rupiah edged closer to Rp 18,000 per US dollar on Monday as a Houthi-claimed attack on Riyadh International Airport heightened geopolitical tensions, while hawkish signals from the US Federal Reserve added to pressure on the Indonesian currency.
The rupiah closed down 14 points, or 0.08%, at Rp 17,913 per dollar on Monday, compared with Rp 17,899 in the previous session.
Traze Andalan Futures director Ibrahim Assuaibi said the rupiah weakened despite signs of easing geopolitical tensions in Eastern Europe. US President Donald Trump said Ukraine and Russia had agreed to halt attacks on each other’s energy facilities following a US diesel supply agreement with Moscow.
However, tensions flared again in the Middle East after Yemen’s Houthi militant group claimed responsibility for an attack on Riyadh International Airport that reportedly killed 13 people and injured more than 300.
The rupiah also came under pressure from renewed concerns over the US Federal Reserve’s monetary policy. St. Louis Fed President Alberto Musalem said further monetary tightening would be necessary to bring inflation back to the central bank’s target, reinforcing concerns about the prospect of additional interest rate hikes.
Domestically, investors remained wary as they awaited an MSCI announcement amid concerns that Indonesia could be downgraded to frontier-market status or face a freeze in its market classification. The uncertainty has continued to weigh on sentiment toward Indonesian assets.
Meanwhile, Bank Indonesia’s August 2026 Retail Sales Survey pointed to an improvement in domestic retail activity.
The Real Sales Index (IPR) reached 226.5 in August, growing 1.3% year-on-year, accelerating from 1.1% growth in July. On a monthly basis, retail sales rose 0.8% in August after contracting 0.1% in the previous month.
The rupiah’s weakness extended to several other currencies. As of 3:59 p.m. Jakarta time, it traded at Rp 13,998 per Singapore dollar, Rp 113.05 per Japanese yen, Rp 12,485 per Australian dollar and Rp 20,063 per euro.
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