Rupiah Slides as Trump–Fed Feud and Geopolitical Risks Shake Markets
Jakarta. Rupiah weakened against the US dollar on Tuesday, Jan. 13, 2026, pressured by a combination of global political and economic uncertainties. The currency closed down 22 points in afternoon trade, after earlier sliding as much as 30 points to Rp 16,877, compared with Monday’s close of Rp 16,855.
Market sentiment deteriorated amid renewed tensions between Donald Trump and the Federal Reserve, which unsettled financial markets and boosted demand for safe-haven assets. Investors grew cautious over concerns that political pressure could undermine US monetary policy, prompting capital flows back into the dollar and US Treasuries, while emerging market currencies, including the rupiah, came under pressure despite relatively stable domestic fundamentals.
“Market sentiment has been shaken by unprecedented developments in the United States, where prosecutors have launched a criminal investigation into Federal Reserve Chair Jerome Powell. Rising political pressure on the Fed has weakened confidence in US monetary policy,” Assuaibi, director of Traze Andalan Futures said in a written statement on Tuesday. He added that uncertainty surrounding the US central bank had encouraged further pressure on the rupiah.
Geopolitical risks also weighed on the currency, with markets closely watching the largest anti-government demonstrations in Iran, which reportedly resulted in numerous casualties as security forces moved to disperse protesters. Trump warned of possible military action if Iranian authorities continued to use lethal force against demonstrators. The rupiah came under additional pressure after Trump announced plans to impose a 25% tariff on Iran’s trading partners, a move aimed at economically isolating Tehran.
Meanwhile, the rupiah remained under strain as repeated attacks on Russia’s oil export infrastructure amid the prolonged conflict in Ukraine raised concerns over global energy supply and added to market volatility.
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