Rupiah Closed Stronger Yesterday, What About Next Week?
The rupiah exchange rate in the spot market at the end of the week, Friday, 10 July 2026, strengthened by 63 points to 18,065 per US dollar compared to the previous day’s close. Next week, the rupiah is predicted to remain at the 18,000 per US dollar level. Meanwhile, data from the Jakarta Interbank Spot Dollar Rate showed the rupiah on Friday was in the range of Rp 18,069. The Indonesian currency has been at the 18,000 level since 8 July, after previously holding at the 17,000 level since 9 June.
Currency and commodity analyst and Director of PT Traze Andalan Futures, Ibrahim Assuabi, predicts the Garuda currency will move in a volatile manner on Monday, 13 July 2026. “However, it will close weaker in the range of 18,060-18,110 per US dollar,” he said in an official statement quoted on Saturday, 11 July 2026.
According to Ibrahim, the strengthening of the US dollar against a number of currencies, including the rupiah, occurred amidst ongoing tensions in the Middle East. This was particularly after the US launched another attack on Iran during the funeral procession of former Tehran leader, Ayatollah Ali Khamenei. The conflict has delayed the full reopening of the Strait of Hormuz, a major waterway through which about 20 percent of global oil and gas supplies pass. Citing Trading Economics, world oil prices on Friday fell to near US$ 76 per barrel compared to the previous day, but remained at a high level for the week.
The surge in oil prices has triggered concerns about inflation, which could ultimately prompt a more aggressive stance from the US Central Bank, the Federal Reserve. “The market appears to have continued to increase their bets on a Fed rate hike in 2026 this week,” said Ibrahim.
Previously, the Executive Director of Bank Indonesia’s Communication Department, Ramdan Denny Prakoso, explained the sentiment most influencing the current depreciation of the rupiah. One factor is the hawkish signal from US Federal Reserve officials during the regular Federal Open Market Committee meeting on 17 June 2026. According to him, although the Fed decided to hold its benchmark interest rate, the Fed Fund Rate, at the FOMC meeting, the market observed a tendency towards tighter monetary policy. This sentiment triggered the US Dollar Index to strengthen and put pressure on developing country currencies, including the rupiah.