Indonesian Rupiah hits record low vs USD on Middle East tensions; USD/IDR conquers 17,700
Indonesian Rupiah hits record low vs USD on Middle East risks; USD/IDR approaches 17,200
Summary:Indonesia's budget deficit nearly doubled year-on-year to IDR 240.1 trillion (0.93% of GDP) in Q1 2026, severely weakening the Rupiah's domestic fundamental support. Bank Indonesia (BI) maintained its benchmark rate at 4.75% to stabilize the currency, but persistent inflation—which hit a multi-year high of 4.76%—limits the central bank's room for further maneuver.The Indonesian Rupiah (IDR) faced a “perfect storm” of global and domestic pressures on April 7, 2026, as it tumbled to IDR 17,079 per US Dollar.