Rupiah has the potential to strengthen, de-escalation sentiment in the Middle East supports the market.

US dollar and rupiah (Photo: dok. Antara)

JAKARTA - The rupiah exchange rate on Thursday, March 5, 2026 is expected to strengthen against the US dollar.

To note, quoting Bloomberg, on Wednesday, March 4, the spot rupiah exchange rate closed down 0.12 percent to Rp16,972 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of the Bank Indonesia (BI) closed down 0.24 percent to the price level of Rp16,911 per US dollar.

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

He added that this strengthening was because market sentiment became more positive following the hope for de-escalation of the conflict in the Middle East after reports that Iran gave signals of readiness to resume negotiations with the US.

"The rupiah has the potential to strengthen against the US dollar amid improving sentiment by the hope of de-escalation of the war in the team following news that Iran signaled its intention to return to negotiations," he told VOI, Thursday, March 5.

Lukman estimates that the movement of the rupiah on Thursday, March 5, 2026 will be in the range of Rp16,850-Rp16,950 per US dollar.