Breaking News! US Dollar Nears Rp17,500
Jakarta, CNBC Indonesia - The rupiah exchange rate began Tuesday morning’s trading with a depreciation against the US dollar.
According to Refinitiv data, the Garuda currency opened in the red zone on Tuesday (12/5/2026) with a 0.43% weakening to the level of Rp17,480/US$.
This weakening occurred after yesterday’s trading, where the rupiah also closed lower, breaching the psychological level of Rp17,400/US, preciselyatRp17, 410/US.
Meanwhile, at 09:00 WIB, the US dollar index or DXY was observed strengthening by 0.16% to 98.104.
The rupiah’s movement in today’s trading is expected to still be influenced by external dynamics, particularly the direction of the US dollar in the global market.
The US dollar moved stronger after US President Donald Trump rejected Iran’s response to the peace proposal submitted by Washington. This situation maintains market concerns over the potential continuation of the conflict and also pushes oil prices higher.
Trump stated that the ceasefire with Iran is in a fragile condition after rejecting Tehran’s response to the US peace proposal. This situation reignites concerns that the conflict, which has lasted for 10 weeks, could continue.
Uncertainty in the direction of US-Iran negotiations makes market participants tend to be cautious. In such conditions, demand for the US dollar as a safe-haven asset still has the potential to increase.
The strengthening of the US dollar in the global market, in turn, can narrow the room for strengthening of emerging market currencies, including the rupiah. This occurs because demand for the US dollar increases, while interest in risky assets tends to be subdued.
In addition to external factors, domestically, market participants are also awaiting the release of retail sales data by Bank Indonesia for the March 2026 period.
In February 2026, retail sales recorded an annual growth of 6.5%. This figure marks the fastest growth rate since March 2024, driven by strong household spending during the Ramadan period.