Rupiah Closes Weaker at Rp 17,966 per US Dollar, Hitting Year-to-Date Low

The rupiah exchange rate closed weaker by 127.5 points, or 0.71 per cent, to Rp 17,966 per US dollar in Wednesday afternoon trading (3/6/202’$. Money market observer Ibrahim Assuaibi noted that the rupiah’s decline, approaching the Rp 18,000 mark, was influenced by a combination of global and domestic sentiments.

Externally, investors continue to monitor developments in the Middle East conflict. Tensions have escalated following Israel’s continued military operations in southern Lebanon, while Iran has reportedly launched ballistic missiles towards Kuwait and Bahrain. “Further rounds of talks involving Israel and Lebanon are scheduled for Wednesday, while uncertainty persists regarding negotiations between Washington and Tehran,” Ibrahim stated in Jakarta on Wednesday.

He added that reports from Iranian media suggesting a lack of communication between Tehran and Washington in recent days have sparked speculation that negotiations have reached a deadlock. Simultaneously, surging oil prices have triggered concerns regarding global inflation, driving speculation that the US Federal Reserve will maintain high interest rate policies for a longer period.

Data released on Tuesday (2/6/2026) showed that US job vacancies increased unexpectedly in April 2026. This condition has strengthened expectations that the US central bank will remain hawkish in its monetary policy. Market participants are now awaiting several US economic indicators, including ADP employment reports, the ISM services index, and factory orders data, which will serve as indicators for the Fed’s direction ahead of the non-farm payrolls release on Friday (5/6/2026).

Domestically, Ibrahim observed that sentiment towards the Garuda currency worsened after May 2026 inflation was recorded at 0.28 per cent month-to-month, higher than the April 2026 inflation rate of 0.13 per cent.