Breaking News: The Dollar Again Breaches Rp17,700
Jakarta, CNBC Indonesia — The rupiah again weakened against the US dollar in Friday’s trade (22 May 2026). The rupiah breached its psychological level this morning. According to Refinitiv data, as of 09:15 WIB, the rupiah stood at Rp17,700 per US1, ordown0.34. With this level, the rupiah again hovered around the Rp17,700 psychological level. This pressure continued from Thursday’s session (21 May 2026), when the currency closed down 0.23% at Rp17,640 per US$.
The rupiah’s movement today was expected to be influenced by domestic economic data, notably Indonesia’s Balance of Payments (NPI) for Q1-2026 by Bank Indonesia (BI). The data will be watched by markets to assess external resilience amid external pressures, high oil prices, and a still-strong US dollar.
In Q4-2025, the NPI recorded a surplus of US$6.1 billion, an improvement from Q3-2025’s deficit of US$4.0 billion. However, current account in Q4-2025 posted a deficit of US$2.5 billion or 0.7% of GDP, reversing from the previous quarter which still recorded a surplus of US$4.0 billion or 1.1% of GDP. Meanwhile, the capital and financial accounts posted a surplus of US$8.3 billion, reversing a deficit of US$8.0 billion in Q3-2025. The surplus was mainly supported by inflows of foreign direct investment and portfolio investments.
The market will monitor whether Q1-2026’s NPI can still register a surplus. The data is important as external pressures rise due to the Middle East conflict, high oil prices, and a firm US dollar.
On the external front, the US dollar’s movement remains a concern. The US Dollar Index stayed near its highest in six weeks, after volatile trading earlier due to mixed signals on prospects for a US-Iran peace deal. Washington and Tehran remain at odds over Iran’s uranium stockpile and control of the Strait of Hormuz. However, US Secretary of State Marco Rubio noted some positive signals in the talks. As long as the dollar remains firm, room for developing-country currencies, including the rupiah, to gain strength remains limited.