Indonesian Rupiah remains subdued as safe-haven demand lifts US Dollar

USD/IDR rises as escalating US-Iran tensions help the US Dollar recover its daily losses.
President Trump claimed "total control" over the strategic waterway amid stalled diplomacy and heightened US-Iran rhetoric.
Indonesia pledged to cap its 2026 deficit under 3% of GDP, backed by a 23%+ surge in tax revenues.

Akhtar Faruqui FXStreet

USD/IDR gains ground for the third consecutive day, trading around 17,920 during the early European hours on Thursday. The pair appreciates as the US Dollar (USD) recovers its daily losses amid escalating geopolitical tensions between the US and Iran. A senior Iranian official noted that Washington and Tehran remain at loggerheads over a permanent end to conflicts in the Gulf, reporting zero progress in reviving the interim deal or establishing an implementation timeline.

President Donald Trump stated that the US has "total control" over the strategic waterway amid heightened rhetoric between Washington and Tehran, while diplomatic talks remain stalled. Meanwhile, the Trump administration is pushing to ramp up economic pressure on Iran as military actions have yet to bring the regime to compliance. Planned measures include broadening economic sanctions and implementing a naval blockade to restrict Iranian oil exports.

Indonesia maintained strong fiscal discipline by committing to keep its 2026 deficit under 3% of GDP, backed by a 23%+ year-over-year surge in tax revenue from January to July. Looking ahead, the government is expected to unveil a consumption-focused 2027 budget proposal this Friday.

Meanwhile, Bank Indonesia leadership is in transition as President Prabowo nominated Aida Budiman for Senior Deputy Governor and put forward Destry Damayanti as the sole candidate to succeed Governor Perry Warjiyo.

Rupiah could rebound as markets welcome BI leadership continuity

Analysts at OCBC highlighted that the Indonesian Rupiah has “strengthened to near a 2-month high” earlier this week following the nomination of Destry Damayanti as the sole candidate to lead Bank Indonesia. They note that markets “appear to have taken comfort from Destry’s extensive experience at BI and expectations for policy continuity, including her emphasis on currency stability.” In their view, the nomination “removes an important source of near-term uncertainty following Perry Warjiyo’s departure,” reinforcing investor confidence in the policy and currency stability framework.

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

GBP/USD holds range near 1.3500 after UK Q2 GDP

GBP/USD keeps its range near the 1.3500 psychological mark in the European session on Thursday. The mixed UK GDP and industrial data failed to inspire the British Pound. Meanwhile, the US Dollar stabilizes after the US CPI data-led sell-off, checking any upside attempts in the pair.

EUR/USD flatlines above 1.1500 as US Dollar stablizes ahead of PPI

EUR/USD is trading modestly flat above 1.1500 in European trading hours on Thursday. The pair stalls its rebound as the US Dollar consolidates losses incurred after the release of July's Consumer Price Index report. Inflation in the US moderated across a broad range of goods and services, cooling expectations for an aggressive Federal Reserve rate hike in September and weighing on the Greenback. The US PPI data is next in focus.

Gold weakens further below $4,400 as USD sticks to gains amid Fed bets, Iran tensions

Gold extends its intraday retracement slide from the highest level since June 5, around the $4,450 area touched earlier this Thursday, and slides further below the $4,400 mark heading into the European session. The initial market reaction to signs of moderating US inflation fades quickly as investors remain worried that higher energy prices will rekindle inflationary pressures.

XRP holds at make-or-break level, ADA and SOL risk 50-day EMA breakout

Top altcoins, including Ripple, Cardano, and Solana, are facing downside pressure, holding at crucial support levels. The technical outlook for XRP, ADA, and SOL indicates a mild bearish bias as downside pressure mounts.

Gold has priced a Fed pause. The hike is still coming

July inflation landed exactly where the consensus had it, on all four lines of the release, and Gold responded by adding around 1% and holding fast near $4,400/ounce, trading at its highest since early June. A print that surprises nobody is not supposed to move a metal that far.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.