Rupiah Closes Slightly Stronger, US Dollar Falls to Rp17,695
The rupiah exchange rate managed to close stronger against the United States dollar in trading on Wednesday (26/8/2026). The strengthening took place amid the fit and proper test of Bank Indonesia governor candidate Destry Damayanti.
Referring to Refinitiv data, the rupiah closed with a slight appreciation of 0.06% at Rp17,695 per US dollar. The movement reversed the previous session’s weakening, when the rupiah closed down 0.11% at Rp17,705 per US dollar on Monday (24/8/2026).
The rupiah actually opened stronger with a gain of 0.20% at Rp17,670 per US dollar this morning. However, its strengthening was trimmed by 25 points by the close of trading.
On the other hand, the US dollar index, which measures the greenback against six major world currencies, was observed at 15.00 WIB to have strengthened slightly by 0.04% to 98.955.
Today’s rupiah movement took place alongside the fit and proper test of Bank Indonesia governor candidate Destry Damayanti at Commission XI of the Indonesian House of Representatives.
In her presentation, Destry assessed that the current rupiah exchange rate remains weaker than its fundamental value, or undervalued. According to her, the rupiah should be able to move stronger than the range of Rp17,700 per US dollar.
“Our rupiah value can actually be lower than now,” Destry said during the fit and proper test at Commission XI of the DPR, Jakarta, Wednesday (26/8/2026).
A lower exchange rate level indicates a stronger rupiah against the US dollar. Destry assessed that pressure on the Garuda currency recently has been influenced more by market sentiment than by Indonesia’s fundamental economic conditions.
“The problem is sentiment. Market sentiment can arise from various sources, including global sentiment. These have gathered together, causing the rupiah’s movement to become as it is now,” Destry stressed.
According to her, the rupiah can strengthen quickly when market sentiment improves. Bank Indonesia will capitalise on that momentum by remaining in the market to maintain exchange rate volatility.
For the long term, Destry assessed that strengthening rupiah stability requires improvement in the external sector, especially through strengthening Indonesia’s Balance of Payments and increasing exports of goods and services.
Certainty regarding Bank Indonesia’s leadership is a concern for market participants because it relates to the continuity of monetary policy and the central bank’s commitment to maintaining rupiah stability.
The rupiah’s strengthening was also somewhat limited amid a stronger US dollar in global markets, as the market awaits the release of US personal consumption expenditures inflation data and a speech by Federal Reserve Chair Kevin Warsh at Jackson Hole on Friday.