Jakarta. Rupiah extended its gains against the US dollar on Friday, strengthening despite Indonesia’s widening budget deficit and continued geopolitical tensions between Washington and Tehran.

The rupiah closed 16 points, or 0.09%, higher at Rp 17,899 per dollar on Friday, Oct. 9, 2026, compared with Rp 17,915 in the previous session.

Traze Andalan Futures Director Ibrahim Assuaibi said the rupiah strengthened despite the release of Indonesia’s latest state budget figures, which showed a deficit of Rp 319 trillion, equivalent to 1.24% of gross domestic product (GDP), as of September 2026.

Finance Minister Suahasil Nazara reported that state revenue had increased 25% year-on-year, while government spending rose 19%. Total state revenue reached Rp 2,341.5 trillion, equivalent to 74.2% of the full-year target of Rp 3,153.6 trillion.

Externally, the rupiah gained ground despite ongoing tensions between the United States and Iran.

On Thursday, US President Donald Trump said Washington was holding productive discussions with Tehran and reiterated that there were no plans for an attack before the US congressional midterm elections on Nov. 3, 2026.

On the same day, Iranian news agency Tasnim reported that Foreign Minister Abbas Araqchi said Tehran was reviewing Washington’s response to its proposal to reopen the Strait of Hormuz within seven days.

Meanwhile, developments in US monetary policy remained in focus after Federal Reserve Governor Christopher Waller said further interest rate increases were necessary, while maintaining flexibility over the pace of tightening.

Other currencies traded against the rupiah on Friday included the Singapore dollar at Rp 13,982, the Japanese yen at Rp 113.25, the Australian dollar at Rp 12,488 and the euro at Rp 20,078.

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