FX.co ★ Rupiah Flat as Traders Eye Inflation and Trade Figures

The Indonesian rupiah traded around IDR 17,820 per U.S. dollar on Monday in thin holiday markets, holding near its previous close as investors awaited May inflation and April trade data due on Tuesday. April’s inflation remained subdued, though ongoing tensions in the Middle East continued to pose upside risks to prices. At the same time, March’s trade surplus was driven more by weak imports than by strong exports, underscoring uneven domestic demand and fragile external momentum.

On the policy front, the government has pledged greater transparency for a new state-owned company that will become the sole exporter of key commodities, in a bid to boost tax revenues and keep more export earnings onshore. Authorities hope the initiative will improve U.S. dollar liquidity after the rupiah hit record lows multiple times this year, despite Bank Indonesia’s mid-May rate hike and other stabilisation measures. Externally, the U.S. dollar index inched higher as uncertainty persisted over the prospects for a durable U.S.–Iran ceasefire.