Rupiah Closes 0.48% Stronger, US Dollar Falls to Rp17,740
The rupiah strengthened against the US dollar in today’s trading, extending its gains amid dollar weakness in global markets.
According to Refinitiv data, at the close of trading on Thursday (20/8/2026), the rupiah appreciated 0.48% to Rp17,740 per US dollar.
The gain extended the currency’s positive performance to two consecutive trading days. On Wednesday (19/8/2026), the rupiah closed 0.14% stronger at Rp17,825 per US dollar.
Meanwhile, the US dollar index (DXY), which measures the greenback against six major world currencies, was down slightly by 0.08% to 98.760 as of 15.00 Western Indonesia Time.
The correction continued the pressure from the previous session, when the DXY closed down 0.83%. The dollar index is now trading around its lowest level in three months.
The rupiah gained support from the dollar’s weakness after the US government announced measures to ease turbulence in the bond market.
The US Treasury Department plans to double its long-term bond buyback operations to maintain market liquidity.
The policy came after a sell-off pushed the yield on 30-year US government bonds to 5.337%, its highest level since 2007. Following the announcement, the yield gradually fell to around 5.184%.
The decline in yields reduced the appeal of dollar-denominated assets and provided room for emerging market currencies, including the rupiah, to strengthen.
Nevertheless, market participants continued to monitor the minutes of the US Federal Reserve’s meeting, which showed that several officials still saw room for interest rate hikes if inflation has not returned to the 2% target.
Bank Indonesia’s decision to hold the BI Rate at 5.75% also provided certainty for the market regarding the direction of monetary policy.
Acting BI Governor Destry Damayanti said the rupiah exchange rate is expected to remain stable going forward, supported by the central bank’s efforts to optimise its monetary instruments.
“BI is pursuing a strategy of maintaining exchange rate stability. Going forward, the exchange rate will be stable, supported by BI’s strengthened stabilisation measures,” Destry said on Wednesday (19/8/2026).