Rupiah Breaches Rp 17,326 After UAE Leaves OPEC
REPUBLIKA.CO.ID, JAKARTA – The rupiah exchange rate against the US dollar continued to weaken, breaching more than Rp 17,300 per US dollar at the end of April 2026. The rupiah’s depreciation is suspected to be influenced, among other factors, by the announcement of the United Arab Emirates (UAE) leaving the Organization of the Petroleum Exporting Countries (OPEC), which will take effect on Friday (1/5/2026).
Citing Bloomberg, the rupiah corrected by 83 points or 0.48 percent to the level of Rp 17,326 per US dollar at the close of trading on Wednesday (29/4/2026). In the previous trading session, the rupiah was at Rp 17,243 per US dollar.
“(External sentiment) the market is considering the impact of the UAE’s decision to leave the OPEC producers’ group. The UAE’s exit is a major blow to the oil producers’ group amid ongoing disruptions due to the Iran war. The UAE stated that the move aims to focus more on ‘its national interests’,” said Currency and Commodities Analyst Ibrahim Assuaibi in his statement on Wednesday (29/4/2026).
In addition, Ibrahim continued, the US will extend the blockade on Iranian ports, which is likely to prolong supply disruptions from the major oil-producing region in the Middle East. US President Donald Trump is known to have instructed his aides to prepare for the extension of the Iran blockade, according to a Wall Street Journal report on Tuesday evening, citing US officials. The report stated that Trump will choose to continue pressuring Iran’s economy and oil exports by preventing shipments to and from its ports.
“Although there is a ceasefire in the US-Israel war with Iran, the conflict remains at a standstill while both parties seek to formally end the fighting, with Iran closing shipping flows through the Strait of Hormuz, a route for around 20 percent of global oil and liquefied natural gas supplies, and the US blockading Iranian ports,” said Ibrahim.
The US is urging an end to the programme claimed by Iran as its nuclear weapons programme. Meanwhile, Iran is demanding some form of compensation from the latest round of fighting, easing of economic sanctions, and some form of control over the Strait of Hormuz.
“The market is currently awaiting the important Federal Reserve (The Fed) interest rate decision to be released tonight, early Thursday at 01:00 WIB. The US central bank is expected to maintain the federal funds rate in the range of 3.5—3.75 percent, marking the third consecutive meeting without changes,” he said.
That meeting is likely to be the last for Jerome Powell, who will be replaced by Kevin Warsh. Traders will take more cues from The Fed’s press conference on how policymakers interpret the impact of higher energy costs and the potential effects on shifting long-term views on interest rates.