Jakarta. Rupiah strengthened slightly against the US dollar on Tuesday, supported by higher foreign exchange reserves even as geopolitical tensions and upcoming US inflation data kept pressure on the currency.

The rupiah closed at Rp17,632 per dollar, up 8 points or 0.05% from Rp17,640 in the previous session.

Traze Andalan Futures Director Ibrahim Assuaibi said the rupiah managed to gain despite persistent external pressures, particularly heightened tensions between the United States and Iran.

Iranian officials recently warned that oil and gas infrastructure across the Gulf could become targets for retaliation following attacks on its assets, keeping the Strait of Hormuz in focus for energy and currency markets.

“The Strait of Hormuz remains a key focus for the oil market. Iran has said it will impose new restricted zones in the Gulf and establish alternative shipping corridors. This has raised concerns that tighter maritime monitoring could further slow tanker traffic through the strategic waterway,” Ibrahim said in a statement on Tuesday.

Market attention is also turning to the US Producer Price Index (PPI), due Wednesday, followed by the Consumer Price Index (CPI) on Thursday. The data will be closely watched for clues on the Federal Reserve’s interest-rate outlook.

Domestically, the rupiah found support from Indonesia’s foreign exchange reserves, which rose to $146.5 billion at the end of August from $145.3 billion a month earlier, according to Bank Indonesia data.

Bank Indonesia said the increase was mainly driven by tax and services revenue, government external borrowing and the central bank’s rupiah stabilization measures in response to continued uncertainty in global financial markets.

Other major currencies were quoted at Rp13,924 per Singapore dollar, Rp114.33 per Japanese yen, Rp12,710 per Australian dollar and Rp20,479 per euro.

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