Rupiah Closes Weak, US Dollar Climbs to Rp17,925
The rupiah exchange rate ended trading on Wednesday (24/6/2026) with a correction against the United States (US) dollar. Pressure occurred amid a strengthening trend for the US dollar in global markets.
Referring to Refinitiv data, the rupiah had to settle in the red zone after closing down 0.50% at the level of Rp17,925/US$. With this position, the Garuda currency has been unable to escape pressure and has now weakened for four consecutive trading days.
Throughout today’s trading, the rupiah moved in the range of Rp17,900-Rp17,955/US.ThismovementmakestherupiahincreasinglyvolatileasitapproachesthepsychologicallevelofRp18, 000/US.
On the other hand, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was observed strengthening 0.14% to 101.547 as of 15.00 Western Indonesia Time.
The strengthening of the US dollar in global markets remains the main factor pressuring the rupiah exchange rate. The greenback’s rally limits the room for manoeuvre for other countries’ currencies, including the rupiah.
The US dollar continued to strengthen, reaching its highest level in more than a year. This rally occurred alongside adjustments in market expectations regarding the policy direction of the US central bank, The Federal Reserve (The Fed), which is perceived as increasingly hawkish.
The Fed’s policy meeting, or Federal Open Market Committee (FOMC), last week—the first meeting under new Fed Chair Kevin Warsh—was read by the market as a signal that the US central bank is still open to raising interest rates this year.
Expectations for a Fed rate hike have consequently surged. Based on CME FedWatch, the probability of a minimum 25 basis point rate hike at the July meeting rose to 36.3%, from 8.5% a week earlier. Meanwhile, the probability of a rate hike at the September meeting jumped to 69.1%, from 29.1% the previous week.
Domestically, Bank Indonesia (BI) continues to strive to stabilise the rupiah while supporting the government’s efforts to maintain robust economic growth. BI is also urging the public to help maintain the rupiah’s stability by using it as the primary transaction currency within the country.
This was conveyed by BI Senior Deputy Governor Destry Damayanti during the CNBC Indonesia Economic Update 2026. “The rupiah is our shared currency, so naturally, maintaining the rupiah’s stability cannot be done by BI alone. I also want to invite all citizens, the entire Indonesian nation, to jointly safeguard the rupiah,” Destry said, as quoted on Wednesday (24/6/2026).
To maintain exchange rate stability, BI has issued a number of new policies. One of them is lowering the threshold for purchasing foreign currency in cash without supporting documents, or underlying, from US$25,000 to US$10,000 per entity per month.
However, Destry stressed that this policy is intended to improve governance, not to prohibit the use of US dollars domestically. “This is about how we reorganise the demand for rupiah. We do not intend to restrict the use of US dollars, but there must be an underlying transaction. Otherwise, it becomes speculative,” she explained.
Destry also called on the public to continue using the rupiah for domestic transactions as a form of support for the stability of the Garuda currency.