Jakarta. The rupiah closed stronger against the US dollar on Friday, lifted by optimism over improving domestic liquidity and cautious optimism in global markets ahead of a potential thaw in US–China trade tensions.

According to Bloomberg data, the local currency gained 27 points to close at Rp 16,602 per dollar, recovering from an earlier dip of 8 points.

Ibrahim Assuaibi, director at Traze Andalan Futures, said the rupiah’s gain came despite lingering concerns about global trade frictions and geopolitical risks. “Traders remained cautious as the release of the US consumer price index (CPI) for September was delayed, a key indicator for the Federal Reserve’s policy outlook,” Ibrahim said in a written statement on Friday.

Market sentiment was buoyed after the White House confirmed that US President Donald Trump will meet Chinese leader Xi Jinping in South Korea next week to discuss bilateral trade. Meanwhile, the US announced new economic sanctions against Russian energy giants Rosneft and Lukoil, heightening geopolitical uncertainty.

Adding to the positive tone, China’s Communist Party unveiled its five-year economic plan, focusing on advanced manufacturing, technological independence, and stronger domestic demand, a move that analysts say reinforces confidence in Beijing’s commitment to structural reform and innovation.

Domestically, the rupiah also drew support from fresh data showing that money supply (M2) expanded by 8 percent year-on-year in September 2025, up from 7.6 percent in August, reaching Rp 9,771.3 trillion, according to Bank Indonesia.

The increase was driven by a 10.7 percent rise in narrow money (M1) and a 6.2 percent increase in quasi money, signaling robust liquidity growth in the financial system.