Rupiah Potentially Strengthens Amid Expectations For China-US Trade Negotiations

JAKARTA - The rupiah exchange rate in trading Tuesday, October 28, 2025, is estimated to have the potential to strengthen against the United States (US) dollar.

To note, citing Bloomberg, on Monday, October 27, 2025, the rupiah spot exchange rate closed down 0.11 percent to the level of IDR 16,621 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed slightly up 0.01 percent to a price level of IDR 16,628 per US dollar.

Doo Financial Futures analyst Lukman Leong said that the rupiah exchange rate has the opportunity to strengthen against the United States (US) dollar in line with the increasing risk on sentiment in the market, driven by positive expectations for trade negotiations between China and the US.

"Rupiah has the potential to strengthen against the US dollar amid risk on sentiment by the hopes of China-US trade negotiations," he told VOI, Selesa, October 28.

However, Lukman reminded that investors remain cautious about domestic sentiment, especially the potential for sell-offs in the stock market due to concerns over the decline in the weight of several Indonesian stocks in the MSCI index.

"Investors remain vigilant with domestic sentiment that has the potential to occur again by the concern of lowering the weight of several Indonesian stocks in MSCI," he explained.

Lukman projects that the movement of the rupiah on Tuesday, October 28, will move in the range of Rp. 16,550 per US dollar to Rp. 16,650 per US dollar.