Rupiah Closes Weak, US Dollar Now Parked at Rp18,100
The rupiah had to end the first trading day of the week in the red against the US dollar. The pressure came amid a strengthening US dollar index.
According to Refinitiv data, the Garuda currency finished at Rp18,100/US$, down 0.30%, in Monday’s trading (13/7/2026). This position puts the rupiah back at its weakest level in a month.
Throughout the session, the rupiah had in fact been under pressure since the morning. The Garuda currency opened weaker at Rp18,075/US, beforeitsslidedeepenedtobreakthroughthepsychologicallevelofRp18, 100/US. The rupiah even touched its weakest intraday level at Rp18,140/US$.
Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was up a marginal 0.04% at 100.985 as of 15.00 WIB.
Today’s rupiah weakness was chiefly driven by strong demand for the US dollar amid renewed heightening global uncertainty.
The pressure emerged after US and Iranian forces once again exchanged missile and drone attacks over the weekend. Iran targeted US facilities in several Gulf countries on Sunday, while also announcing the closure of the Strait of Hormuz once more, a vital route for global energy trade.
The development immediately lifted oil prices at the start of Asian trading. Brent crude was up 3.3% at US$78.49 per barrel.
The rise in oil prices is concerning because it could add to global inflationary pressure. A renewed rise in inflation could increase the odds of a US central bank (The Federal Reserve/The Fed) rate hike.
At present, market players are increasingly inclined to expect the Fed to raise interest rates twice by the end of the year. Based on the CME FedWatch Tool, the implied probability of two or more rate hikes by the December meeting stands at 52.1%, up from 47.6% last Friday.
The combination of geopolitical tensions, rising oil prices and heightened US rate expectations has given the US dollar fresh momentum. This weighed on the rupiah throughout the first trading day of the week.