Jakarta. The rupiah appreciated 0.45 percent to Rp 16,374 against the US dollar on Tuesday, rebounding from Rp 16,448 following President Donald Trump’s announcement of a 30-day delay in new tariffs on Mexico and Canada.

The dollar index dropped 0.31 percent to 108.6, while US 10-year Treasury yields slipped 4 basis points to 4.56 percent. 

Despite Tuesday’s strengthening, currency analyst Ariston Tjendra projected further pressure on the rupiah, citing the US January Manufacturing Purchasing Managers’ Index (PMI), which rebounded to 50.9 from December’s 49.2.

“With the US economy showing signs of strength, market sentiment toward the dollar could remain favorable,” Tjendra said, noting potential rupiah weakness to Rp 16,480 while support remains at Rp 16,380.

Indonesia’s Free Nutritious Meals program, which imports key commodities such as wheat and soybeans, may face cost pressures if trade disputes intensify. Meanwhile, the rupiah’s performance will likely depend on global sentiment, influenced by developments in US trade negotiations.

Trump’s tariff policies continue to sway global markets. On Monday, the US president announced a temporary pause on proposed 25 percent tariffs targeting imports from Mexico and Canada. However, a 10 percent tariff on Chinese goods remains set to take effect. Trump also hinted at additional tariffs on European Union imports, adding to global economic uncertainty.

Trump justified the tariffs as tools to address illegal immigration, drug trafficking, and trade imbalances. "Tariffs are very powerful both economically and in getting everything else you want," Trump said during a press briefing.

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