Jakarta, CNBC Indonesia - The rupiah exchange rate opened weaker\nagainst the US dollar in the final trading session of the week, Friday\n(19\/6\/2026), amid strengthening global market demand for the\ngreenback.<\/p>\n
According to Refinitiv data, the Garuda currency opened weaker at\nRp17,830\/US,\u2006d<\/em>e<\/em>p<\/em>r<\/em>e<\/em>c<\/em>i<\/em>a<\/em>t<\/em>i<\/em>n<\/em>g<\/em>b<\/em>y<\/em>0.73<\/span>.\nThat strengthening came after Bank Indonesia (BI) again raised its\nbenchmark interest rate, the BI Rate, by 25 basis points to 5.75%.<\/p>\n Meanwhile, the US dollar index (DXY), which measures the greenback\u2019s\nstrength against six major world currencies, was seen moving stably at\n100.821 as of 09.00 Western Indonesian Time. This position remains\nelevated after the previous close on Thursday (18\/6\/2026), when the DXY\nsurged 0.76%. The strengthening dollar index indicates market\nparticipants are still chasing dollar-denominated assets, a condition\nthat can ultimately pressure emerging market currencies, including the\nrupiah.<\/p>\n The US dollar moved strongly as market participants continued to\ndigest the results of the US Federal Reserve (The Fed) meeting on\nWednesday local time. The meeting was the first under the leadership of\nnew Fed Chair Kevin Warsh. Warsh\u2019s relatively brief comments, coupled\nwith the Fed\u2019s latest projections on the direction of interest rates,\nreinforced expectations that US interest rates could still rise this\nyear. These expectations helped push the dollar to its highest level in\nmore than a year.<\/p>\n On the domestic front, market participants are also still responding\nto the results of Bank Indonesia\u2019s Board of Governors Meeting (RDG BI)\non Thursday (18\/6\/2026). In that meeting, BI again raised the BI Rate by\n25 basis points to 5.75%. This decision provides hope for stability and\neven potential rupiah strengthening going forward, as the rate hike\ndemonstrates BI\u2019s continued focus on maintaining exchange rate stability\namid US dollar pressures and global uncertainty.<\/p>\n As a note, BI has raised its benchmark interest rate by a total of\n100 basis points within approximately one month. The first increase of\n50 basis points was made at the May 2026 monthly RDG, followed by a 25\nbasis point hike at the weekly RDG the previous week, and the latest 25\nbasis point increase at the June 2026 monthly RDG.<\/p>\n In addition to raising interest rates, BI has also further tightened\nregulations on foreign exchange purchases against the rupiah. BI reduced\nthe limit for outright cash purchases of foreign exchange against the\nrupiah without an underlying transaction to US$10,000 per entity per\nmonth. This policy will take effect on 1 July 2026.<\/p>\n \u201cWe are doing this to enforce existing governance rules. Dollar\npurchases, especially above US$10,000, must have an underlying,\u201d said BI\nDeputy Governor Destry Damayanti in a press conference on Thursday\n(18\/6\/2026). Previously, BI had lowered the threshold for dollar\npurchases without an underlying to US$25,000 per person per month. Now,\nthat limit has been further reduced as part of efforts to strengthen the\nMoney Market and Foreign Exchange Market (PUVA) deepening policy to make\nit more advanced, efficient, and prudent. This measure is also aimed at\nmaintaining the attractiveness of foreign investment and increasing the\neffectiveness of monetary policy, including in stabilising the rupiah\nexchange rate.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/us-dollar-strengthens-to-rp17-830-1781837548",
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