Rupiah Closes Stronger After Four-Day Losing Streak

The rupiah closed stronger against the US dollar on Wednesday (29/7/2026), breaking a four-day losing streak. According to Refinitiv data, the Garuda currency ended the day appreciating 0.06% to Rp18,045 per US dollar. The rupiah experienced a sharp reversal during the session, having opened 0.25% weaker at Rp18,100 per US dollar, touching a psychological support level, before recovering to close 55 points stronger than its opening position. Meanwhile, the US dollar index (DXY), which measures the greenback against six major currencies, was down 0.12% to 101.291 in the afternoon, deepening its earlier correction. The rupiah’s turnaround came as the US dollar weakened ahead of the Federal Open Market Committee (FOMC) announcement. Despite receiving support from safe-haven demand due to Middle East tensions, the greenback lost momentum throughout the trading day. Market participants are bracing for the Federal Reserve’s interest rate decision, with a 33% probability priced in for a 25-basis-point rate hike. Bank Indonesia (BI) has reaffirmed its commitment to maintaining rupiah stability amid high global uncertainty and the central bank’s leadership transition. Erwin Gunawan Hutapea, Senior Executive Director and Head of the Monetary and Securities Asset Management Department at BI, stated that stability is a key prerequisite for supporting sustainable economic growth. He explained that efforts to stabilise the currency are not limited to the policy rate, with BI sharpening the use of other monetary instruments, including triple intervention in the foreign exchange market and optimising instruments such as Bank Indonesia Rupiah Securities (SRBI) supported by swap incentives and DNDF hedging.