Breaking: Rupiah Strengthens This Morning, US Dollar Falls to IDR 16,720

Jakarta, CNBC Indonesia - The Rupiah exchange rate opened strongly against the US dollar this morning, Thursday (February 26, 2026), amid a weakening US dollar in the global market.

According to Refinitiv data, the Rupiah started trading in positive territory, appreciating 0.36% to IDR 16,720 per US dollar. This strengthening continues the positive trend from the previous trading day, Wednesday (February 25, 2026), when the Rupiah closed up 0.21% and remained at IDR 16,780 per US dollar.

Meanwhile, the US dollar index (DXY) was down 0.19% to 97.512 at 09:00 WIB. This decline extends the dollar’s correction after the DXY closed down 0.15% yesterday.

The Rupiah’s movement today is expected to continue to be influenced by the dynamics of the US dollar in the global market. The weakening dollar is reflected in the decline of the DXY, which indicates that market participants are selling assets denominated in the greenback. This, in turn, creates room for other currencies, including the Rupiah, to strengthen.

Global market sentiment is still tinged with uncertainty regarding US tariff policy after President Donald Trump reaffirmed his commitment to implementing tariffs in his State of the Union address. This stance maintains uncertainty about trade direction and makes the dollar’s movement tend to be volatile.

From the monetary policy side, comments from the President of the US Central Bank (The Federal Reserve/The Fed) St. Louis, Alberto Musalem, are considered neutral. Alberto stated that the current benchmark interest rate is around a neutral level and is sufficient to balance the risks to the labor market and inflation.

Market participants also still see the possibility of a 25 basis point interest rate cut at the next Fed (FOMC) meeting on March 17-18 as relatively small, at around 2%.

The weakening dollar is ultimately a positive sentiment for the movement of emerging market currencies, including the Rupiah, in today’s trading.