Rupiah Slips but Eyes First Weekly Gain in 4 Weeks

The Indonesian rupiah weakened to around IDR 18,130 per U.S. dollar on Friday, reversing gains in the prior two sessions as the dollar index firmed ahead of October U.S. jobs data. The currency also tracked losses across Asian peers amid shifts in regional forex markets driven by global risk sentiment and tech-sector volatility. Locally, elevated oil prices continued to weigh on the rupiah by raising import costs and straining fiscal conditions, given Indonesia's status as a net oil importer. Corporate dollar demand added pressure, as major firms, including state-owned enterprises, needed to meet offshore debt obligations, settle energy import bills, and fund capital expenditure. Still, the rupiah remained on track for a modest weekly gain, the first rise in four weeks, lifted by October forex reserves reaching a seven-month high. Sentiment also drew support from stronger-than-expected Q3 GDP growth, reinforcing views that Indonesia could achieve its 2026 growth target of around 5.4%.