{
  "id": 12099216,
  "title": "Indonesian Rupiah weakens as elevated import cost weigh on balance of payments",
  "url": "https://urgent.news/2026/10/05/indonesian-rupiah-weakens-as-elevated-import-cost-weigh-on-balance-of",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T07:16:34.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/indonesian-rupiah-weakens-as-elevated-import-cost-weigh-on-balance-of-payments-202610050716"
  },
  "original_language": "en",
  "account": "The Indonesian Rupiah (IDR) weakened as high import costs added pressure to the nation's balance of payments. During early European trading on Monday, the USD/IDR pair climbed to approximately 17,950, reflecting an upward trend as the Rupiah faced selling pressure due to market uncertainty ahead of crucial economic data releases. These data points include September foreign exchange reserves and August retail sales figures. Indonesia's external position remains precarious despite posting a trade surplus in August, with the persistent surge in import demand and increasing energy costs continuing to strain its balance of payments amid heightened Middle East tensions. The strengthening US Dollar (USD) contributed to the upward movement of the USD/IDR pair, driven by increased safe-haven demand triggered by the recent escalation of Middle Eastern conflicts. Saudi-backed forces in Yemen carried out a significant offensive to regain territory from Houthi rebels, while Iran-aligned groups seized control of the Bab el-Mandeb strait, a crucial maritime passage linking the Red Sea and the Gulf of Aden. This development intensified regional tensions and impacted crude oil exports that typically bypass the Strait of Hormuz. In parallel, altered expectations surrounding US monetary policy influenced broader market sentiment. Following weaker-than-anticipated US employment data, the CME FedWatch Tool indicated a high probability of the Federal Reserve maintaining interest rates at their current levels at the next policy meeting. This shift highlighted a growing belief among financial markets that a slowdown in the US job market would prompt policymakers to keep rates unchanged. Analysts at MUFG/BTMU noted that the upcoming September US nonfarm payrolls report was weakening the case for an October Federal Reserve interest rate hike, even as the overall labor market remained relatively stable, with modest job growth and a slight increase in the unemployment rate to 4.2% from 4.1%. The market terms \"risk-on\" and \"risk-off\" were relevant in this context, with investors opting for riskier assets in a \"risk-on\" environment and shifting towards safer investments in a \"risk-off\" scenario. In a \"risk-on\" market, commodities generally rise, supported by positive growth outlooks, while \"risk-off\" markets see bonds and safe-haven currencies, like the US Dollar, Japanese Yen, and Swiss Franc, gain value.",
  "summary": "USD/IDR gains ground after posting modest losses in the previous day, trading around 17,950 during the early European hours on Monday.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}