Jakarta. Rupiah extended its gains against the US dollar on Friday, closing stronger for a second straight session as solid domestic credit growth helped offset persistent global and geopolitical uncertainty.

The rupiah gained 54 points, or 0.30%, to close at Rp 17,694 per US dollar, compared with Rp 17,748 in the previous session.

Traze Andalan Futures Director and currency analyst Ibrahim Assuaibi said the rupiah continued to strengthen despite external pressures, including the US Treasury Department's plan to double its buybacks of longer-dated Treasury securities to at least $4 billion per operation over the coming quarter.

Meanwhile, lower weekly US jobless claims suggested that the US labor market remained relatively stable, despite an unexpected decline in employment in July.

“This keeps the Federal Reserve focused on controlling inflation, while markets continue to debate the timing of its next interest rate move,” Ibrahim said in a statement on Friday.

Geopolitical risks also remained in focus as prospects for restarting US-Iran negotiations continued to fade. US President Donald Trump has signaled economic pressure against countries supporting Iran.

On the domestic front, the rupiah drew support from Indonesia’s solid credit growth in July, even as businesses scaled back borrowing amid ongoing uncertainty.

Bank lending grew 13.58% year-on-year in July, accelerating from 12.67% in June. The expansion was supported by ample liquidity, accommodative macroprudential policies from Bank Indonesia, and a resilient banking sector.

Indonesia’s banking capital adequacy ratio stood at 23.70%, while the gross non-performing loan ratio remained low at 2.09%.

As of 3:59 p.m. Jakarta time, Bloomberg data showed the Singapore dollar at Rp 13,940, the Japanese yen at Rp 111.61, the Australian dollar at Rp 12,669, and the euro at Rp 20,700.

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