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Rupiah steadies as S&P affirms Indonesia’s BBB rating with a stable outlook
Indonesia’s rupiah held near 18,140 per dollar during Tuesday trading after S&P Global Ratings reaffirmed its sovereign rating, helped by strong mid-year fiscal revenue progress.
The Indonesian rupiah stabilized against the US dollar, trading around 18,140 during Tuesday’s Asian session, as a rally in domestic equities supported risk sentiment.
FXStreet attributed the currency’s improved footing to S&P Global Ratings affirming Indonesia’s BBB/A-2 sovereign credit rating with a stable outlook, while noting that potential headwinds from high energy prices, elevated global interest rates, and currency weakness are offset by strong commodity revenues, strict fiscal spending restraint, and resource-sector reforms.
The report also pointed to government fiscal data, showing state revenue at 46.3% of its full-year target, up 21.4% year over year, as a further boost to confidence.
At the same time, the dollar remained under pressure despite safe-haven demand linked to escalating Middle East tensions, with FXStreet citing US Central Command statements on new precision strikes on Iranian military targets and rising oil prices that could keep inflation risks on the radar for the Federal Reserve.