Breaking News! Rupiah Strengthens Sharply, US Dollar Falls to Rp17,300

Jakarta, CNBC Indonesia - The rupiah exchange rate opened stronger against the US dollar on Thursday’s trading (7/5/2026). According to Refinitiv data, the Garuda currency began trading in the green zone with an appreciation of 0.46% to Rp17,300 per US dollar. This strengthening continues the positive trend from the previous trading session on Wednesday (6/5/2026), when the rupiah closed up 0.17% at Rp17,380 per US dollar. Meanwhile, the US dollar index (DXY) was observed weakening as of 09:00 WIB, with the DXY at 97.919. The rupiah’s movement in today’s trading received a boost from external factors. The weakening of the US dollar in global markets has opened up more room for emerging market currencies to strengthen, including the rupiah. The US dollar is weakening against the six major world currencies. Pressure on the greenback is occurring alongside increasing market optimism regarding the chances of ending the war between the US and Iran. This positive sentiment has led investors to return to risk assets and reduce demand for the US dollar as a safe-haven asset. This optimism emerged after a source from Pakistan, acting as a mediator and aware of the negotiation process, stated that Washington and Tehran are getting closer to agreeing on a one-page memorandum to end the conflict. The report strengthens market hopes that geopolitical tensions in the Middle East could begin to ease. If the conflict truly moves towards resolution, pressure on oil prices, global inflation, and demand for the US dollar as a safe asset could potentially decrease as well. With the easing of demand for safe-haven assets, the US dollar tends to come under pressure. This situation provides positive sentiment for the rupiah, as a weakening dollar typically gives room for emerging market currencies to move stronger.