Rupiah strengthens as US dollar corrects

The Indonesian rupiah opened 0.04% stronger against the US dollar on Tuesday, gaining seven points to 17,715 from the previous close of 17,722.

Lukman Leong, an analyst at Doo Financial, said the currency’s rise reflected a correction in the dollar. He expected the rupiah to open broadly flat, with limited room for further gains.

The dollar’s correction was linked to concerns about the US government’s planned buyback of long-term bonds. The US Treasury has announced that the minimum size of each operation will increase to $4 billion from $2 billion starting Sept. 9, 2026.

Domestic investors were taking a wait-and-see approach ahead of Indonesia’s inflation and trade data. Leong expected the trade figures to show a deficit of about $300 million, driven by a projected 24% increase in imports linked to high crude oil prices. He also forecast year-on-year inflation to rise from 2.88% to 3.13%.

Based on those factors, the rupiah was expected to trade between 17,650 and 17,800 per US dollar.

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The rupiah is expected to open flat with limited potential to strengthen against the correcting US dollar.