Jakarta, CNBC Indonesia - The rupiah exchange rate reversed course to\nweaken against the US dollar at the close of trading on Monday\n(24\/8\/2026). This depreciation also ended the rupiah\u2019s strengthening\nstreak over three consecutive trading days.<\/p>\n
Referring to Refinitiv data, the rupiah closed down 0.17% or\ndepreciated to the level of Rp17,715\/US$.<\/p>\n
Throughout today\u2019s trading, the rupiah actually opened stronger by\n0.03% at the level of Rp17,680\/US$ in morning trading. However, the\nGaruda currency then reversed direction and weakened by 25 points from\nthe opening position to the close.<\/p>\n
Meanwhile, the US dollar index (DXY), which measures the strength of\nthe greenback against six major world currencies, was observed\nstrengthening 0.17% to position 98.969 at 15.00 WIB. The DXY\u2019s\nstrengthening widened compared to the morning position, which had only\nrisen 0.03%.<\/p>\n
The rupiah weakened as the US dollar turned stronger in today\u2019s\ntrading. US services activity data, which recorded the strongest growth\nin nearly two years, was one of the factors holding back selling\npressure on the greenback.<\/p>\n
The dollar also received support from high US government bond yields.\nLong-term bond yields remained around their highest levels in several\ndecades due to concerns over government debt, inflationary pressures,\nand increased financing needs.<\/p>\n
However, the dollar\u2019s strengthening remained limited as the market\nmonitored the US Treasury Department\u2019s plan to increase buybacks of\nlong-term government bonds. The policy raised concerns that efforts to\nsuppress yields could actually weigh on the dollar.<\/p>\n
Market participants were also awaiting details of new US sanctions\nagainst Iran as well as a speech by Federal Reserve Chair Kevin Warsh at\nthe Jackson Hole symposium on Friday. Warsh\u2019s remarks will be\nscrutinised for clues regarding the direction of US interest rates.<\/p>\n
In addition, the rupiah remained overshadowed by the widening of\nIndonesia\u2019s current account deficit. In the second quarter of 2026, the\ncurrent account deficit swelled to US$12.49 billion, from US$3.58\nbillion in the previous quarter.<\/p>\n
Bank Danamon Chief Economist Irman Faiz assessed that the widening\ncurrent account deficit would increase Indonesia\u2019s need for foreign\ncapital flows to cover external financing. This condition limits the\nroom for rupiah appreciation and makes its movement vulnerable to\nvolatility.<\/p>\n
According to Irman, the level of Rp18,000\/US$ may still be tested\nagain if global pressures increase or foreign capital flows are\ninsufficient to meet external financing needs.<\/p>\n
\u201cOur baseline still sees USD\/IDR at the end of the year in the range\nof Rp17,900-18,150, so Rp18,000 is not a tail-risk scenario, but is\nstill within our fundamental range,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-closes-weaker-as-us-dollar-rises-to-rp17-705-1787561539", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }