Rupiah strengthens on US midterm election results

 Woori Saudara Bank analyst Rully Nova said the rupiah’s gain against the US dollar at the opening of trading on Thursday, rising 98 points to Rp18,070 per US dollar from the previous close of Rp18,168, was influenced by the results of the US midterm elections, which were won by the Democratic Party.

“With the Democratic Party’s victory, there is an expectation that it will limit the Trump administration’s room to maneuver on tariff policy, taxes, the government budget deficit, and government bond issuance, prompting global investors to re-balance their portfolios toward risk-on,” he told ANTARA in Jakarta 

This factor also contributed to a 10.1 basis point (bps) decline in the 10-year US Treasury yield to 4.86 percent, and a weakening of the US dollar index to 101.3.

The rupiah’s gain was also supported by a drop of more than 8 percent in Brent crude oil prices to near US$95 per barrel, as reported by Anadolu news agency.

The international benchmark fell US$8.55, or 8.25 percent, to US$95.05 on Wednesday (4/11) at 18.50 GMT, dropping below the US$100 level for the first time in a month. The US benchmark, West Texas Intermediate (WTI), fell US$7.81, or 8.13 percent, to US$88.28.

In the domestic market, the improved sentiment was reflected in a decline in Indonesian government bond yields to 7.67 percent, as well as support from projections that third-quarter 2026 national economic growth will be stronger than in the previous quarter.

Based on these factors, the rupiah is projected to move in the range of Rp18,000 to Rp18,100 per US dollar.