Rupiah Closes Strong, US Dollar Rate Now at Rp17,950

The Garuda currency managed to perform strongly against the United States dollar in trading on Wednesday (10/6/2026). Referring to Refinitiv data, the rupiah exchange rate closed 0.55% stronger at Rp17,950 per US dollar. This position allowed the rupiah to exit the psychological level of Rp18,000 per US dollar, after first breaching that level on 4 June. Throughout today’s trading, the rupiah had actually opened much stronger at Rp17,875 per US dollar, or an appreciation of 0.97%. However, the rupiah’s strengthening temporarily diminished, touching the Rp18,000 per US dollar level again, before finally managing to gain once more by the close of trading. Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was observed in the red zone as of 15.00 WIB with a slight weakening of 0.03% to the level of 99.882. The strengthening of the rupiah in today’s trading remains in line with the market’s response to Bank Indonesia’s unexpected decision to raise the benchmark interest rate, or BI Rate, by 25 basis points to 5.50% on Tuesday (9/6/2026). The increase was decided in a Weekly Board of Governors Meeting to evaluate the implementation of the policy mix stipulated in the Monthly Board of Governors Meeting. Bank Indonesia Governor Perry Warjiyo stated that the BI Rate hike was a further step to strengthen the stabilisation of the rupiah exchange rate from the impact of high global turmoil due to the war in the Middle East. The move is also pre-emptive to keep 2026 and 2027 inflation within the government-set target range of 2.5±1%. Perry explained that, in accordance with the law and current practice, Bank Indonesia holds a Weekly Board of Governors Meeting every Tuesday to evaluate the implementation of the policy mix. In the evaluation since the Monthly Board of Governors Meeting on 19-20 May 2026, the rupiah exchange rate showed weaker-than-expected developments. Besides being influenced by ongoing global turmoil and high domestic foreign exchange demand, pressure on the rupiah was also driven by foreign portfolio investment outflows from Indonesia. Aside from domestic sentiment, the rupiah’s movement today was also supported by external factors. The weakening of the US dollar in the global market opened up room for gains for other currencies, including the rupiah. The US dollar weakened after crude oil prices fell sharply, following a statement by US President Donald Trump who again signalled that a US-Iran deal could be reached within the coming days. Trump also mentioned that the Strait of Hormuz could be reopened soon after the deal is signed.