The Indonesian rupiah slipped to around IDR 16,850 per dollar on Monday, down for the second session as the dollar index climbed on safe-haven demand amid mounting tensions in the Middle East. Bank Indonesia said the U.S. attack on Iran has intensified global risk-off sentiment and pledged to stay active in the forex market to stabilise the currency. On fresh data, annual inflation hit a 35-month top of 4.76% in February, above the central bank’s 1-1/2%–3-1/2% target range, largely due to base effects from electricity tariff discounts last year. Core inflation edged up to 2.63%, the strongest since May 2023. Meantime, January’s trade surplus missed forecasts as imports jumped ahead of Ramadan and Eid al-Fitr. Governor Perry Warjiyo has signaled further policy easing, citing a mild inflation outlook for 2026–2027 and support for President Prabowo Subianto’s pro-growth agenda. The board last month held rates at 4.75% for a fifth straight meeting after cutting 150bps since September 2024.