Gotrade News - The Indonesian rupiah closed at 17,138 per US dollar on Thursday, gaining 0.03% on the day. The modest uptick came alongside a broader rally in Asian currencies driven by easing geopolitical tensions.
Key Takeaways
- The rupiah gained 4 points to 17,138/USD as reports emerged that Iran may reopen shipping lanes near Hormuz
- Asian currencies rallied broadly, with the Taiwan dollar up 0.28%, and the Philippine peso and Thai baht each gaining 0.18%
- Indonesia's external debt reached $437.9 billion in February, up 2.5% year-over-year, while IMF cut GDP growth forecasts
What Drove the Move
Reports that Iran is considering reopening shipping lanes near Oman and the Strait of Hormuz lifted sentiment. The easing of US-Iran tensions provided a tailwind for risk assets across Asia.
The rupiah was not alone in its gains on Thursday. The Philippine peso rose 0.18%, the Thai baht added 0.18%, and the Taiwan dollar climbed 0.28%.
Indonesia's Macro Backdrop
Beneath the currency move, Indonesia's fiscal picture shows some pressure building. External debt reached $437.9 billion in February 2026, up 2.5% compared to a year earlier.
The budget deficit widened to 0.93% of GDP in March, more than double the 0.4% recorded a year ago. Oil prices near $100 per barrel are straining the government's $70 per barrel budget assumption.
The IMF now projects Indonesia's 2026 GDP growth at 5.0%, trimmed from a prior 5.1% forecast. The World Bank is more cautious at 4.7%, reflecting concerns about global trade disruptions.
For investors with rupiah-denominated exposure, the currency remains under structural pressure despite today's gain. The widening gap between budgeted and actual oil prices is a key fiscal risk to monitor.
