Dollar Declines Amid Global Trends and Trade Developments; Rupiah Weakens on Fitch Rating and Trade War Concerns

The dollar weakened yesterday, closing at R$ 5.81, influenced by positive news regarding a potential ceasefire in Ukraine and a temporary rollback of tariffs by Ontario, Canada. Earlier, President Trump had announced increased tariffs on Canadian steel and aluminum, but later suggested he might reverse them. Emerging market currencies generally strengthened against the dollar. Indonesia's rupiah weakened, closing at Rp16,452 per dollar, influenced by Fitch's affirmation of Indonesia's 'BBB' rating with a stable outlook. Fitch highlighted potential uncertainties in Indonesia's state budget and projected a widening deficit. The rupiah was also affected by ongoing trade war uncertainties, including tariff increases by the U.S. and retaliatory measures by Canada. The Jakarta Interbank Spot Dollar Rate (JISDOR) also weakened to Rp16,453 per dollar.