Rupiah Strengthens Amid Investor Caution Over Trump's Tariff Policies and China's Deflation Concerns

Jakarta - The Indonesian Rupiah (IDR) strengthened on Monday, influenced by investor caution amid concerns over U.S. President Donald Trump's tariff policies and deflation in China. Currency analyst Ibrahim Assuabi noted that Trump's tariffs on goods from Canada, Mexico, and China initially heightened trade tensions. While Trump softened his stance by delaying tariffs on Mexican and Canadian goods, he remained firm on China. China is experiencing deflation, with both consumer and producer prices declining. The Producer Price Index (PPI) fell by 2.2% year-on-year, slightly better than January's 2.3% decline but still below the expected 2% decrease. China's month-on-month inflation data also contracted. The trend of deflation has intensified discussions among policymakers regarding stimulus measures to support economic growth and domestic demand. At Monday's close in Jakarta, the Rupiah strengthened by 73 points, or 0.44%, to Rp16,367 per U.S. dollar. The Jakarta Interbank Spot Dollar Rate (JISDOR) at Bank Indonesia strengthened to Rp16,336 per U.S. dollar.