Middle East conflict pushes rupiah to Rp 17,728 per US dollar

The rupiah exchange rate on Tuesday, 19 May 2026 weakened by 60 points, or 0.34 percent, to Rp 17,728 per US dollar. At the close of trade yesterday, the rupiah stood at Rp 17,668 per US dollar.

President Director of PT Doo Financial Futures, Ariston Tjendra, said the rupiah’s weakness was driven by the spillover from the Middle East conflict into crude oil prices and inflation in the United States.

“This is still the euphoria of the Middle East conflict spilling over everywhere, such as the rise in crude oil prices and inflation,” he said, as quoted by Antara.

The rise in US inflation expectations has pushed up yields on US Treasuries. It was recorded that the yield on US government bonds for the 2-year tenor stood at 4.105 percent, 10-year at 4.631 percent, and 30-year at 5.159 percent.

This increase marks a new high for 2026. The rising US yields, Ariston said, have strengthened the US dollar against other currencies, including the rupiah.

Looking at domestic sentiment, pressure from crude oil prices above USD 100 per barrel is lifting the cost of living for people. Consequently, crude oil imports raise demand for US dollars domestically.

“In addition, this is dividend season; dividend repatriation abroad increases demand for the US dollar and also weighs on the rupiah,” added Ariston.