Jakarta. Rupiah edged higher on Thursday, supported by easing geopolitical fears and steady domestic indicators, despite lingering external risks.

Indonesian currency closed at Rp 17,138 per US dollar, strengthening 4 points from the previous Rp 17,143, after briefly slipping earlier in the session.

Ibrahim Assuaibi, director at Traze Andalan Futures, said the rupiah gained traction as markets grew more optimistic about de-escalation between Washington and Tehran.

“Expectations of easing US-Iran tensions, following reports that Iran may allow vessels to pass through the Strait of Hormuz, are outweighing concerns over prolonged supply disruptions,” Ibrahim said.

The shift in sentiment follows signals from the White House expressing optimism over a potential agreement to end hostilities with Iran, while warning of increased economic pressure on Tehran if talks fail.

The conflict involving the US, Israel, and Iran has disrupted oil and gas flows through the Strait of Hormuz, a critical chokepoint that handles roughly 20% of global energy supply.

Domestically, the rupiah also drew support from Indonesia’s external debt position. The country’s foreign debt stood at $437.9 billion in February 2026, up from $434.9 billion in the previous month.

On an annual basis, external debt grew 2.5% year-on-year in February, accelerating from 1.7% in January.

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