FX.co ★ Rupiah Slips but Eyes First Weekly Gain in 4 Weeks

The Indonesian rupiah weakened to around IDR 18,130 per U.S. dollar on Friday, erasing gains from the previous two sessions as the dollar index strengthened ahead of the release of October U.S. jobs data. The rupiah also followed declines in other Asian currencies, reflecting broader shifts in regional foreign exchange markets driven by global risk sentiment and volatility in the technology sector.

Domestically, elevated oil prices continued to pressure the rupiah by increasing import costs and straining public finances, given Indonesia’s position as a net oil importer. Additional downside pressure came from corporate demand for dollars, as major companies – including state-owned enterprises – sought to meet offshore debt obligations, pay for energy imports, and finance capital expenditures.

Despite the day’s weakness, the rupiah remained on course for a modest weekly gain, its first in four weeks, supported by a rise in October foreign exchange reserves to a seven-month high. Market sentiment was further underpinned by stronger-than-expected Q3 GDP growth, bolstering expectations that Indonesia can achieve its 2026 growth target of around 5.4%.