The rupiah managed to close the final trading session of the week in\npositive territory. However, on a weekly basis, the Garuda currency was\nstill unable to escape pressure from the United States dollar.<\/p>\n
According to Refinitiv, in trading on Friday (3\/7\/2026), the rupiah\nclosed up 0.24% at Rp17,945\/US$. This gain allowed the rupiah to break a\nthree-day losing streak. Nonetheless, point-to-point, the currency still\nweakened by 0.22% for the week.<\/p>\n
This condition indicates that pressure on the rupiah has not fully\nsubsided. Moreover, the rupiah\u2019s position remains not far from the\npsychological level of Rp18,000\/US$.<\/p>\n
Domestic pressures remain considerable. A series of economic data\nreleased earlier in the week gave negative signals for the Indonesian\neconomy. Indonesia\u2019s inflation rose again in June 2026. At the same\ntime, Indonesia\u2019s trade balance recorded a deficit for the first time in\nsix years. Manufacturing activity also came under further pressure after\nthe Manufacturing PMI fell deeper into contraction territory.<\/p>\n
The rupiah\u2019s movement this week occurred amid a weakening of the US\ndollar in global markets. The US dollar index (DXY) was recorded down\n0.49% for the week to 100.857.<\/p>\n
The weakening of the US dollar was actually a tailwind for Asian\ncurrencies. However, the rupiah\u2019s strengthening at the end of the week\nwas not enough to bring the Garuda currency to a positive weekly\nperformance.<\/p>\n
Although the dollar index weakened, the movement of Asian currencies\nthis week was not entirely uniform. Six currencies managed to strengthen\nagainst the US dollar, while four others still weakened.<\/p>\n
The Thai baht was the strongest Asian currency this week with a gain\nof 0.54%. The next position was occupied by the Malaysian ringgit, which\nstrengthened 0.44% to MYR 4.067\/US,\u2006f<\/em>o<\/em>l<\/em>l<\/em>o<\/em>w<\/em>e<\/em>d<\/em>b<\/em>y<\/em>t<\/em>h<\/em>e<\/em>S<\/em>o<\/em>u<\/em>t<\/em>h<\/em>K<\/em>o<\/em>r<\/em>e<\/em>a<\/em>n<\/em>w<\/em>o<\/em>n<\/em>w<\/em>h<\/em>i<\/em>c<\/em>h<\/em>r<\/em>o<\/em>s<\/em>e<\/em>0.39<\/span>.\nThe Chinese yuan also strengthened 0.27% to CNY 6.7797\/US,\u2006t<\/em>h<\/em>e<\/em>J<\/em>a<\/em>p<\/em>a<\/em>n<\/em>e<\/em>s<\/em>e<\/em>y<\/em>e<\/em>n<\/em>r<\/em>o<\/em>s<\/em>e<\/em>0.22<\/span>.<\/p>\n Meanwhile, the Taiwan dollar was the most pressured Asian currency\nwith a depreciation of 0.25%. The rupiah followed with a weakening of\n0.22%, then the Philippine peso weakened 0.21% and the Vietnamese dong\nfell 0.19%.<\/p>\n This condition shows that the weakening of the US dollar was not\nstrong enough to lift all Asian currencies. Some regional currencies did\nmanage to strengthen, but the rupiah was still held back by less\npositive domestic sentiment.<\/p>\n Pressure on the US dollar this week came from United States labour\ndata which was much weaker than expected. US non-farm payrolls data\nshowed the economy only added 57,000 jobs in June 2026. This figure was\nfar below the expectations of economists in a Reuters poll who had\nforecast an addition of 110,000 jobs.<\/p>\n This data signalled that the US labour market is beginning to lose\nsteam. As a result, market participants started to cut expectations that\nthe US central bank, the Federal Reserve or The Fed, would raise\ninterest rates again in the near future.<\/p>\n Before the labour data was released, the market had been quite\naggressive in predicting that The Fed still had a chance to raise\ninterest rates in September. However, after the data came out,\nexpectations for a rate hike began to decline. This condition put\npressure on the US dollar because when the chance of a Fed rate hike\nrecedes, the dollar\u2019s attractiveness as a high-yielding asset also\ndiminishes.<\/p>\n For Asian currencies, the weakening of the US dollar should have been\na positive catalyst. However, the response of each currency was not the\nsame because the market also continues to consider the domestic\nconditions of each country.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/baht-ringgit-won-surge-as-us-dollar-weakens-rupiah-still-lagging-1783144272",
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