Jakarta. Indonesia’s rupiah continued to depreciate on Monday, hovering near the Rp 17,000-per-dollar mark, as escalating global trade tensions and fading expectations for near-term US interest rate cuts pressured emerging-market currencies.

The rupiah closed 68 points weaker at Rp 16,964 per dollar in afternoon trading, compared with a previous close of Rp 16,896, according to Bloomberg data.

“For Tuesday’s trading, the rupiah is likely to move in a volatile range but close weaker between Rp 16,950 and Rp 16,980 per dollar,” said Ibrahim Assuaibi, director at Traze Andalan Futures, in a note on Monday.

External factors have played a dominant role in the rupiah’s slide. Sentiment was dented after US President Donald Trump announced plans to impose higher trade tariffs on goods from eight European countries, following a dispute linked to Greenland. The United States is set to levy additional tariffs of up to 10% starting Feb. 1, with the possibility of raising duties to as much as 25% by June if no agreement is reached.

The tariff announcement drew sharp criticism from European officials and fueled concerns of a transatlantic trade dispute, further dampening appetite for risk-sensitive assets, including regional currencies.

The rupiah has also been pressured by resilient US economic data, which has reinforced expectations that the Federal Reserve may keep interest rates higher for longer. Recent figures showed the US labor market remains relatively strong, prompting traders to reassess the likelihood of multiple rate cuts this year.

“There is a growing view that the US central bank could maintain elevated interest rates for an extended period,” Ibrahim said. Futures tied to the Fed’s policy rate now indicate expectations for rate cuts have shifted to June and September 2026, from earlier projections of January and April.

Adding to regional headwinds, data released on Monday showed China’s economy expanded 5.0% in 2025, meeting the government’s target. While exports helped offset weak domestic consumption, the figures underscored uneven growth momentum in Asia, offering limited support for regional currencies.