FX.co ★ Rupiah Steady as BI Reaffirms Stability Amid Tariff Review

The Indonesian rupiah traded steady around IDR 16,830 per dollar on Tuesday, largely unchanged from the previous session, as investors weighed a mix of domestic and global developments. President Prabowo Subianto instructed officials to evaluate the implications of a recent U.S. Supreme Court ruling on tariffs, seeking to anticipate potential spillovers to trade and financial markets.

At the same time, Bank Indonesia reiterated its commitment to keeping inflation within the 1.5%–3.5% target range this year, while prioritizing rupiah stability through market-friendly liquidity measures. Policymakers maintained that the currency is still undervalued and reaffirmed their readiness to intervene if necessary, underpinned by ample foreign exchange reserves. They also indicated there is still scope for further monetary easing to support economic growth, following a cumulative 150 basis points of rate cuts since September 2024.

On the data front, market participants are looking ahead to key domestic releases due next week, including February inflation and January trade figures. Externally, the dollar index strengthened ahead of U.S. President Trump’s State of the Union address.