The Indonesian rupiah slipped toward IDR 17,930 per U.S. dollar on Wednesday, extending prior weakness and moving closer to the 18,000 mark as a firm greenback and heightened Middle East tensions boosted demand for haven assets. Meanwhile, domestic fundamentals offered little cushion, with April's trade surplus narrowing to its lowest since 2020, reducing support from export inflows. Market caution persisted despite government measures to bolster dollar liquidity via a new state-owned commodity trading firm and tighter retention rules for exporters. Reports of local banks quoting above 18,000 underscored ongoing pressure. Meanwhile, annual inflation accelerated to 3.08% in May from 2.42% in April, driven by food and transport costs. Risks remain from global energy prices and El Ni