The Indonesian rupiah slipped toward a new low of around IDR 17,290 per dollar on Thursday, marking a third session of losses amid a firmer U.S. dollar that drew support from haven demand following stalled U.S.–Iran peace efforts. Wednesday's move by Bank Indonesia to keep interest rates unchanged for a seventh straight meeting offered little support, as the currency repeatedly hit record lows this month. Pressure has been exacerbated by Indonesia’s reliance on imported energy, despite recent hikes in non-subsidized fuel prices. Governor Perry Warjiyo warned higher oil prices could widen the current account deficit to 0.5%–1.3% of GDP, up from an earlier estimate of 0.1%–0.9%. In response, Bank Indonesia has stepped up intervention, pushing forex reserves to a two-year low while lifting bond yields to attract inflows. However, sentiment remains vulnerable, as fiscal concerns surrounding President Prabowo’s key programs add to broader risk-off sentiment tied to the Middle East conflict.