Jakarta. Indonesia’s rupiah slipped back into the red on Thursday, pressured by escalating geopolitical tensions and mounting fiscal concerns, as the currency briefly breached the psychologically important Rp 17,000 level against the US dollar.

The rupiah closed down 19 points at Rp 17,002 per dollar in afternoon trading, after weakening as much as 45 points from its previous close of Rp 16,983.

According to Ibrahim Assuaibi, director of Traze Andalan Futures, the currency came under renewed pressure after US President Donald Trump signaled that the United States would continue striking Iran, including energy and oil targets, in the coming weeks.

“The statement marks a reversal from earlier comments this week, when Trump suggested the US could withdraw from Iran within a similar timeframe, even without a formal agreement,” Ibrahim said on Thursday.

The rupiah also weakened amid rising threats to maritime traffic as tensions intensified in the region. On Wednesday, a QatarEnergy-chartered oil tanker was reportedly hit by an Iranian cruise missile in Qatari waters, according to the country’s defense ministry.

External pressures were further compounded by market caution ahead of key US economic data releases later this week, including weekly initial jobless claims and Friday’s nonfarm payrolls (NFP) report.

Domestically, sentiment was weighed down by concerns that Indonesia’s state budget deficit could widen beyond its target, driven by higher subsidy spending as global oil prices surge.

Add as a preferred source on Google +