{
  "id": 16154431,
  "title": "Indonesian Rupiah strengthens against US Dollar as safe-haven demand shifts",
  "url": "https://urgent.news/2026/10/23/indonesian-rupiah-strengthens-against-us-dollar-as-safe-haven-demand",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-23T05:04:13.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/indonesian-rupiah-strengthens-against-us-dollar-as-safe-haven-demand-shifts-202610230504"
  },
  "original_language": "en",
  "account": "The Indonesian Rupiah strengthened against the US Dollar as safe-haven demand shifted. The USD/IDR pair traded around 18,110 during Asian hours on Friday, after two days of gains. This depreciation occurred as the US Dollar struggled due to doubts about the sustainability of the AI trade and weak investor confidence following lower-than-expected quarterly earnings from major US technology companies. Geopolitical tensions in the Middle East added to market risk aversion, driving demand for safe-haven currencies like the Japanese Yen and Swiss Franc. Fed officials showed little urgency in accelerating policy tightening, with Fed Chair Kevin Warsh expressing optimism about the US economy's underlying strength but not signaling additional interest rate hikes. Despite this, markets expect a 92.8% probability of a rate pause at the upcoming October 27-28 policy meeting. The Indonesian Rupiah faced domestic challenges, including higher global oil prices, rising food costs due to El Niño, and criticism from President Prabowo Subianto over MSCI's proposed changes to Indonesia's market classification. In response to regulatory concerns, the Indonesian financial regulator, OJK, imposed penalties totaling 2.1 trillion rupiah ($116.67 million) on parties violating trading rules across three listed companies. Bank Indonesia's recent actions in the foreign exchange market were crucial to its policy stance, with the central bank preferring targeted currency stabilization over outright monetary tightening due to MSCI's warnings about demoting Indonesian equities from emerging to standalone market status. The Rupiah is sensitive to various global and domestic factors, and its trajectory depends on both domestic resilience and international economic momentum. Bank Indonesia plays a central role in stabilizing the Rupiah through strategic monetary policy and direct market operations.",
  "summary": "USD/IDR inches lower after two days of gains, trading around 18,110 during Asian hours on Friday. The pair depreciates as the US Dollar (USD) struggles amid mounting doubts regarding the sustainability of the AI trade.",
  "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."
}