Breaking News: Rupiah Opens Weak as US Dollar Hits Rp17,800

Jakarta, CNBC Indonesia - The rupiah opened trading after the Eid al-Adha holiday with a depreciation against the US dollar on Friday (29 May 2026). According to Refinitiv data, the rupiah opened at Rp17,800 per US dollar, a 0.14% depreciation. This depreciation continues the pressure on the rupiah from the last trading session before the holiday. On Tuesday (26 May 2026), the rupiah closed down 0.25% at Rp17,775 per US dollar, marking the weakest closing level against the US dollar in history. Meanwhile, the US Dollar Index (DXY), which measures the greenback’s strength against six major currencies, remained stable. At 9:00 AM WIB, the DXY stood at 98.974, following a 0.19% decline in the previous session. The rupiah’s movement in the final trading session of the week will still be influenced by global dollar dynamics. The US dollar weakened globally after reports that the US and Iran had reached an agreement to extend the ceasefire. However, similar reports in the past three months have not fully ended the conflict. In recent weeks, the US dollar’s movement has been heavily influenced by developments in the Middle East conflict. The dollar tends to strengthen when markets perceive the conflict as likely to prolong, and weaken when signals of de-escalation emerge. According to several sources, the latest agreement is said to extend the ceasefire for 60 days. The deal also allows traffic to resume through the Strait of Hormuz. Finance Minister Purbaya Yudhi Sadewa said the rupiah level around Rp17,800 per US dollar does not reflect Indonesia’s economic fundamentals. ‘It doesn’t make sense,’ Purbaya said at the Directorate General of Taxes, Ministry of Finance, on Wednesday (27 May 2026). According to Purbaya, Indonesia’s economic fundamentals remain strong, with growth above 5%, inflation within targets, and a controlled current account deficit. However, the US dollar’s strength due to global uncertainty has pressured the rupiah and other currencies. The government and Bank Indonesia have implemented several measures to curb the rupiah’s depreciation, including efforts to control US dollar supply domestically. Purbaya stated the government would take additional steps to support rupiah strength, and noted incoming foreign investor activity as a key factor in maintaining investor confidence in Indonesia. The government and Bank Indonesia have implemented several measures to curb the rupiah’s depreciation, including efforts to control US dollar supply domestically. Purbaya stated the government would take additional steps to support rupiah strength, and noted incoming foreign investor activity as a key factor in maintaining investor confidence in Indonesia.