Jakarta. Rupiah weakened further to Rp 18,135 per US dollar on Monday as rising global oil prices heightened concerns over Indonesia’s fiscal position and escalating Middle East tensions weighed on market sentiment.

The rupiah closed down 55 points, or 0.30%, from Rp 18,080 per dollar at the previous close on Monday, Oct. 26, 2026.

Ibrahim Assuaibi, director of Traze Andalan Futures, said the rupiah was under pressure from growing fiscal concerns as global oil prices climbed, noting that Indonesia remains a net oil importer.

“Higher oil prices could widen the state budget deficit by increasing oil import costs, energy subsidy spending and compensation payments to Pertamina,” Ibrahim said in a statement on Monday.

External pressures also weighed on the currency as investors monitored escalating tensions in the Middle East.

Yemen’s Houthi group, which is aligned with Iran, continued its attacks over the weekend and claimed responsibility for strikes targeting airports and oil facilities in Saudi Arabia.

US President Donald Trump, meanwhile, said it was time to decide whether to reach a deal with Tehran or “end it altogether,” raising the prospect of renewed hostilities following months of conflict.

Markets are also bracing for key US economic developments this week, including the Federal Reserve’s monetary policy meeting and the release of its preferred inflation gauge.

“The US economic agenda to watch this week includes the Fed meeting, which begins on Tuesday, with its policy decision due on Wednesday [early Thursday Jakarta time], followed by the release of the Fed’s preferred inflation indicator, the core Personal Consumption Expenditures (PCE) price index, on Thursday,” Ibrahim said.

As of 3:59 p.m. Jakarta time on Monday, the Singapore dollar stood at Rp 14,167, the Japanese yen at Rp 115.32, the Australian dollar at Rp 12,751 and the euro at Rp 20,323 against the rupiah.

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