Rupiah Potentially Strengthens Amid Expectations To Ease China-US Tensions

Rupiah (photo: dock. Antara)

JAKARTA - The rupiah exchange rate in trading Tuesday, October 21, 2025, is estimated to have the potential to strengthen against the United States (US) dollar.

To note, citing Bloomberg, on Monday, October 20, 2025, the rupiah spot exchange rate closed higher by 0.09 percent to the level of Rp. 16,575 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 Rp. 16,585 per US dollar.

Doo Financial Futures analyst Lukman Leong estimates that the rupiah will strengthen against the US dollar amid hopes of easing tensions between China and the United States.

According to him, this was driven by plans to meet the delegations of the two countries in the near future, as well as a meeting between President Trump and President Xi which is scheduled for next week.

"The rupiah is expected to strengthen against the US dollar amid hopes that investors will ease China's tension, with the two delegates meeting soon and Trump meeting Xi next week," he told VOI, Monday, October 20.

However, he explained that the strengthening of the rupiah is expected to be limited because investors tend to wait and see ahead of the BI Board of Governors Meeting (RDG BI) which will be held tomorrow, as well as the release of US inflation data this weekend.

"However, strengthening (Rupiah) will be limited considering that investors are waiting and see looking forward to RDGBI tomorrow and US inflation data this weekend," he explained.

Lukman projects that the movement of the rupiah on Tuesday, October 21, will move in the range of Rp. 16,500 per US dollar to Rp. 16,600 per US dollar.