Rupiah has the potential to strengthen, the escalation of the Middle East and the rise in oil prices are obstacles.

JAKARTA - The rupiah exchange rate on Tuesday, March 31, 2026 is expected to strengthen against the US dollar.

To note, quoting Bloomberg, on Monday, March 30, the spot rupiah exchange rate closed down 0.13 percent to Rp17,002 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of the Bank Indonesia (BI) closed down 0.21 percent to the price level of IDR16,993 per US dollar.

Doo Financial Futures analyst Lukman Leong, predicts that the rupiah exchange rate has the potential to strengthen against the US dollar.

In addition, he added that this strengthening was driven by dovish statements from Federal Reserve Chairman Jerome Powell as well as Fed official Christopher Waller.

"The rupiah has the potential to strengthen against the US dollar following the dovish statement from Fed Chairman Powell and Fed official William," he told VOI, Tuesday, March 31.

However, he said that the strengthening of the rupiah is expected to be limited as market sentiment is still tending to be negative, as well as rising oil prices due to the escalation of conflicts in the Middle East region.

"However, the strengthening is expected to be limited given that market sentiment is generally still negative and oil prices are still rising due to escalation in the Middle East," he said.

Lukman estimates that the movement of the rupiah on Tuesday, March 31, 2026 will be in the range of Rp16,950-Rp17,050 per US dollar.