Rupiah Closes Stronger, US Dollar Drops to Rp17,880
Jakarta, CNBC Indonesia - The rupiah closed strongly against the US dollar in trading on Tuesday (21/7/2026), amid a weakening dollar in global markets.
According to Refinitiv data, the rupiah ended trade at Rp17,875 per US dollar, strengthening 0.28% from the previous close of Rp17,930. The strengthening had been under way since the morning session opened, when the rupiah opened marginally higher by 0.06% at Rp17,920.
Throughout the day’s trading, the rupiah moved within a range of Rp17,860 to Rp17,945 per US dollar.
Meanwhile, the US dollar index (DXY) was down 0.06% at 100.892 as of 15.00 WIB. The dollar’s weakness gave the rupiah room to strengthen in today’s trade.
The rupiah’s movement today was influenced by dynamics both at home and abroad.
Externally, the movement of the US dollar in global markets remained the market’s focus. Although the DXY weakened slightly in the afternoon, it remained near the 101 level as markets stayed cautious amid developments in the Middle East conflict.
Tensions in the Middle East have revived concerns over global energy supplies, pushing oil prices to hover around six-week highs.
The rise in oil prices has the potential to increase global inflationary pressure once again. This situation could prompt a number of central banks to maintain tight monetary policy for longer, whilst also sustaining demand for the US dollar.
Nevertheless, hopes of the conflict subsiding remain alive after Tehran accepted a 10-day ceasefire proposal from mediators. The news tempered demand for the US dollar as a safe-haven asset and gave the rupiah room to strengthen.
Domestically, market attention is focused on the outcome of Bank Indonesia’s Board of Governors Meeting, due to be announced on Wednesday (22/7/2026). Market players are awaiting BI’s decision on the benchmark interest rate, after the central bank raised it by a total of 100 basis points since May 2026 to 5.75%.
In addition, positive sentiment also came from Indonesia’s sound fiscal position. The Ministry of Finance reported a first-half 2026 state budget deficit of Rp196.5 trillion, equivalent to 0.76% of gross domestic product.
The deficit arose from state revenue of Rp1,459 trillion against state spending of Rp1,656.6 trillion. The primary balance was recorded at Rp85.1 trillion.
Finance Minister Purbaya Yudhi Sadewa said state revenue grew 21.4% year on year over the first half of 2026. The government has also assured that the budget deficit will be kept below the 3% of GDP ceiling through the end of the year.