Rupiah Potentially Strengthens Along With The Elimination Of Trade Wars And Dovish Attitudes Of The Fed

JAKARTA - The rupiah exchange rate in trading Tuesday, October 14, 2025, is estimated to have the potential to strengthen against the United States (US) dollar.

To note, citing Bloomberg, on Monday, October 13, 2025, the rupiah spot exchange rate was closed slightly by 0.02 percent to the level of Rp. 16,573 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed up 0.03 percent to a price level of IDR 16,580 per US dollar.

Doo Financial Futures analyst Lukman Leong estimates that the rupiah exchange rate has the potential to strengthen against the US dollar as tensions ease with the trade war with China.

"The rupiah is estimated to have the potential to strengthen against the US dollar by easing the tension of China's trade war," he told VOI, Tuesday, October 14.

According to him, the strengthening of the rupiah was also supported by increased expectations of Fed's rate cuts, following a dovish statement from Head of The Fed Philadelphia Anna Paulson, indicating a greater possibility of cutting interest rates going forward and assessing that the impact of inflation from import rates is not as big as previously feared.

"The rupiah is also supported by the prospect of cutting the Fed's interest rate after Dovish comments from the Head of the Philadelphia Fed Anna Paulson who anticipates a bigger cut in interest rates in the future and sees the threat of inflation from tariffs not as much as anticipated," he explained.

Lukman projects that the movement of the rupiah on Tuesday, October 14, will move in the range of Rp. 16,500 per US dollar to Rp. 16,600 per US dollar.