RRI.CO.ID, Jakarta - The rupiah opened trading on Tuesday morning, March 3, 2026, with a slight 7-point gain to IDR 16,861 per US dollar, compared to the previous close of IDR 16,868 per US dollar. Although the movement was limited, this strengthening reflects the resilience of the domestic currency amidst still-strong external pressures.

Research and Development Officer of the Indonesia Commodity and Derivatives Exchange (ICDX), Taufan Dimas Hareva, assessed that the rupiah's movement would continue to be characterized by volatility as global dynamics persist.

"The rupiah's movement today is expected to remain volatile, with a tendency to move within a limited range while awaiting further developments in global dynamics," he said in Jakarta on Tuesday, March 3, 2026, as quoted by Antara.

Globally, the escalating conflict in the Middle East has prompted market participants to adopt a more cautious stance (risk aversion). This has led to renewed demand for safe-haven assets such as the US dollar and gold, putting additional pressure on emerging market currencies.

Furthermore, expectations of a tighter interest rate policy from the Federal Reserve have also strengthened the US dollar's position broadly. The combination of geopolitical sentiment and the direction of global monetary policy is the dominant factor limiting the potential for rupiah appreciation.

Non-domestic, however, Indonesia's economic fundamentals are considered quite solid. Controlled inflation and Bank Indonesia's commitment to maintaining exchange rate stability provide important cushions against external pressures.

"The rupiah's strengthening amidst the Middle East conflict is more due to market adjustments and profit-taking in the US dollar following its previous strengthening," Taufan explained.

Given this combination of global and domestic factors, the rupiah is expected to remain volatile within a limited range while awaiting further developments in geopolitical dynamics and global monetary policy. ***