Natasha Khairunisa, Jakarta – Rupiah extended its decline on Friday as stronger-than-expected US labor data and firm signals from the Federal Reserve reinforced the dollar, outweighing easing geopolitical tensions in the Middle East.
The currency closed 50 points lower at Rp 17,188 per US dollar, after briefly weakening by as much as 60 points from the previous close of Rp 17,138.
Director of Traze Andalan Futures, Ibrahim Assuaibi, said the rupiah came under pressure despite rising optimism that tensions in the Middle East could subside, following a 10-day ceasefire between Lebanon and Israel.
He added that Donald Trump had indicated the United States and Iran may hold talks over the weekend, further fueling hopes of de-escalation.
"From a data perspective, initial US jobless claims fell to 207,000 for the week ending April 11, below the 215,000 forecast and lower than the previous week's 218,000," Ibrahim said on Friday.
The stronger labor data, alongside recent Job Openings and Labor Turnover Survey (JOLTS) figures pointing to subdued hiring and layoffs, reinforced expectations that the US economy remains resilient, keeping the dollar supported.
The rupiah also faced additional pressure as Federal Reserve officials reiterated their current policy stance. New York Fed President John Williams noted that tensions involving Iran could push prices higher and signaled expectations of rising headline inflation, while emphasizing that the central bank's current policy stance remains appropriate.