Jakarta. Rupiah weakened further against the US dollar on Friday, closing at Rp 17,801 as hawkish signals from the Federal Reserve and renewed concerns over Indonesia's market accessibility overshadowed improving global risk sentiment.

The Indonesian currency slipped 7 points to Rp 17,801 per US dollar at the close of trading on Friday, from Rp 17,794 in the previous session.

Ibrahim Assuaibi, director of Traze Andalan Futures, said the rupiah remained under pressure despite an improvement in global risk sentiment after the United States and Iran signed a temporary agreement aimed at ending tensions in the Middle East and restoring shipping access through the Strait of Hormuz.

However, renewed Israeli airstrikes on Thursday raised doubts over the durability of the ceasefire agreement.

"The improving export outlook has erased much of the geopolitical risk premium that pushed oil prices above $120 per barrel at the peak of the crisis," Ibrahim said in a statement received on Friday.

The rupiah also weakened after Federal Reserve policymakers signaled only one interest rate cut through the end of 2026.

"The Fed left interest rates unchanged on Wednesday, but comments from Chairman Kevin Warsh were interpreted by markets as strongly hawkish, pushing up Treasury yields and lifting the US dollar to its strongest level in more than a year," Ibrahim said.

On the domestic front, sentiment was dampened after Morgan Stanley Capital International (MSCI) assigned Indonesia a negative rating for its information flow criterion in the 2026 Global Market Accessibility Review.

MSCI reiterated concerns over the transparency of share ownership structures and indications of coordinated or artificial trading activities in Indonesia's stock market.

Meanwhile, Bloomberg data showed that, as of 3:59 p.m. Jakarta time, the Singapore dollar traded at Rp 13,780, the Japanese yen at Rp 110.38, the Australian dollar at Rp 12,494, and the euro at Rp 20,410 against the rupiah.

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