Indonesian Rupiah Falls Near 18,000 per Dollar on Middle East Tensions

The Indonesian rupiah weakened to the 18,000‑per‑dollar level early in the week, trading around Rp 18,014–Rp 18,115 per USD, a decline of roughly 0.2‑0.4 %. The slide followed heightened tensions in the Middle East after the United States launched a series of attacks on Iran and Iran’s recent strikes on shipping in the Strait of Hormuz. The conflict pushed oil prices higher, fueling a broader risk‑off shift that lifted the U.S. dollar against most Asian currencies.

Analysts linked the currency pressure to both the geopolitical flare‑up and expectations that the U.S. Federal Reserve may adopt a tighter monetary stance. Market participants cited the prospect of additional Fed rate hikes, especially after testimony by Fed official Kevin Warsh, as adding to the dollar’s strength. The combined effect of higher oil prices and potential tighter U.S. policy kept the rupiah under pressure throughout the trading session.