Diverging Fortunes: Indonesian Rupiah Falls to 18,000, Malaysian Ringgit Remains Relatively Stable
Diverging Fortunes: Indonesian Rupiah Falls to 18,000, Malaysian Ringgit Remains Relatively Stable
- REUTERS/Edgar Su
Jakarta, VIVA – Asian currencies have once again come under the spotlight after the Rupiah experienced significant pressure against the US dollar. Amid global economic turmoil, investors have once again sought safe-haven assets such as the US dollar, putting pressure on many emerging market currencies, including the Rupiah.
This situation has also led to an interesting comparison with the currency of a neighbouring country, such as the Malaysian Ringgit, which appears to be more stable in recent trading.
Rupiah Falls to 18,000
According to trading data on Thursday morning, 4 June 2026, the Rupiah weakened again against the US dollar to 18,015 per US dollar, or down 0.27 per cent. This marks one of the weakest levels for the Rupiah in recent times.
This condition is due to a combination of external and domestic pressures. Doo Financial Futures currency analyst, Lukman Leong, said that the strengthening of the US dollar was the main factor putting pressure on emerging market currencies.
“The Rupiah is expected to weaken against the strengthening US dollar amid rising geopolitical tensions in the Middle East,” Lukman told Antara in Jakarta on Thursday.
In addition to geopolitical factors, stronger-than-expected US economic data has also strengthened the position of the US dollar. Labour market data and the index of activity in the service sector show that the US economy is still solid.
This has led to global capital flows returning to the US dollar, putting pressure on currencies such as the Rupiah. Domestically, market sentiment has not been strong enough to significantly support the Rupiah’s movement.
However, Bank Indonesia is expected to take action. Intervention in the foreign exchange market is expected to be strengthened to maintain Rupiah stability and prevent it from continuing to fall to new psychological levels.
“With poor domestic sentiment, but approaching a new psychological level, Bank Indonesia is likely to intervene aggressively,” he added.
With these conditions, the Rupiah is expected to remain volatile in the range of 17,900 to 18,050 per US dollar in the near future.
The Malaysian Ringgit is Relatively More Stable
In contrast to the Rupiah, the currency of Malaysia, the Ringgit, has shown a relatively more stable movement and even a slight strengthening against the US dollar in recent trading.