Rupiah Closes Weaker at Rp17,843 per US Dollar as Markets Eye Trump's Military Threats and US Economic Data
The rupiah exchange rate fell back into the red at the close of trading on Monday (22/6). The Garuda currency weakened by 39 points, or 0.22%, to Rp17,843 per US dollar, compared with the previous position of Rp17,804 per US dollar.
Money market analyst Ibrahim Assuaibi said pressure on the rupiah was triggered by heightened market concerns following US President Donald Trump’s statement regarding possible military action in Lebanon.
"Market sentiment was shaken after President Trump warned Iran about potential additional military action unless it takes steps to control the Hizbollah group operating in Lebanon. The comments came as US Vice President JD Vance opened a new chapter of diplomatic talks with Iranian representatives in Switzerland," he said in a written statement in Jakarta on Monday (22/6).
On the other hand, diplomatic developments between the United States and Iran provided more positive sentiment for global energy markets. During the negotiations in Switzerland, Iran reportedly secured an exemption for oil and petrochemical exports. This condition is considered capable of easing concerns about global energy supplies while also putting pressure on crude oil prices.
A number of senior officials from the US and Iran completed the first round of negotiations in Switzerland on Monday. The talks are a continuation of an agreement reached last week aimed at extending the fragile ceasefire since April for at least another 60 days. The Iranian government stated that the discussions in Switzerland showed positive progress, while mediators from Qatar and Pakistan said the parties had reached a preliminary agreement on a roadmap towards a more comprehensive deal.
Beyond monitoring geopolitical dynamics in the Middle East, investors are also awaiting several important US economic indicators scheduled for release this week. "Market attention this week is on US economic data, particularly the final estimate of first-quarter 2026 GDP and the core PCE price index, the Fed’s preferred inflation measure, due at the end of the week for new clues on the direction of monetary policy," Ibrahim said.
Meanwhile, according to Bank Indonesia data, the Jakarta Interbank Spot Dollar Rate (JISDOR) showed a slight strengthening. In today’s trading, JISDOR was recorded at Rp17,819 per US dollar, an improvement from the previous position of Rp17,826 per US dollar.