Rupiah Closes Weaker, US Dollar Rises to Rp17,360
Jakarta, CNBC Indonesia - The rupiah exchange rate ended this week’s final trading session weaker against the US dollar on Friday (8/5/2026).
According to Refinitiv data, the rupiah closed 0.17% weaker at Rp17,360 per US dollar. This weakening also broke the rupiah’s strengthening trend over two consecutive trading days since Wednesday.
From the start of trading, the rupiah was already moving in the red zone. The Garuda currency opened slightly weaker by 0.06% at Rp17,340 per US dollar. The pressure continued, deepening the rupiah’s weakening by the close of afternoon trading.
At the same time, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was observed to strengthen slightly. As of 3:00 PM WIB, the DXY rose 0.05% to 98.112.
The rupiah’s weakening in today’s trading occurred alongside the strengthening of the US dollar in global markets. This condition acted as a brake on emerging market currencies, including the rupiah.
The US dollar strengthened due to renewed tensions between the United States and Iran. The two countries exchanged attacks and harsh statements again on Thursday local time, adding pressure to the ceasefire that had been in place for about a month.
The latest tensions have prompted market participants to once again seek the US dollar as a safe-haven asset. As a result, the greenback strengthened for the second day after previously hitting a more-than-two-month low earlier in the week, when markets were optimistic about the chances of a peace agreement.
However, Faisal Rachman, Head of Macro Economic and Market Research at Permata Bank, explained that the rupiah’s weakening is not only influenced by high global uncertainty and increasing risk-off sentiment in financial markets, but also by seasonal patterns of payments for returns on domestic financial assets to non-resident investors.
“In Q2 2026, there is indeed a seasonal pattern of payments for returns on domestic financial assets to non-residents, which causes the rupiah to weaken,” Faisal told CNBC Indonesia, quoted on Friday (8/5/2026).
On the other hand, global uncertainty continues to shadow the rupiah’s movements because it makes market participants tend to avoid risky assets.
Nevertheless, Faisal assessed that the depreciation pressure on the rupiah remains relatively controlled. According to him, the chances of the rupiah breaking through the Rp18,000 per US dollar level are not yet too high.
“The depreciation pressure is likely to continue, but I think the rupiah will still be able to hold below Rp18,000,” he said.