Inp.polri.go.id - Jakarta. The Indonesian Rupiah weakened against the US Dollar on Tuesday morning (5/5/2026), slipping 11 points or 0.07% to reach Rp17,405 per USD, down from its previous close of Rp17,394.
Market analysts attribute the decline to heightened geopolitical risks in the Middle East following reports of military friction involving Iran, the UAE, and the United States.
"The Rupiah has the potential to weaken further as the US Dollar strengthens in response to the escalation in the Middle East," said Lukman Leong, a currency analyst at Doo Financial Futures, as cited by antaranews.com.
Tensions spiked following conflicting reports of drone attacks in the UAE and the initiation of "Project Freedom" by the US, a military operation aimed at assisting vessels in the Strait of Hormuz.
Despite the regional instability, experts believe the Rupiah's depreciation may be limited as investors pivot their focus to domestic economic indicators. The market is currently awaiting the release of Indonesia’s Q1 2026 Gross Domestic Product (GDP) data, scheduled for release later today. The Rupiah is projected to fluctuate within the range of Rp 17,350 to Rp 17,450 per US Dollar for the remainder of the trading session.
(mg/inp/pr/rs)
