Rupiah Continues to Decline, Reaching Rp 17,728 per US Dollar

The rupiah exchange rate on Tuesday at 11:02 WIB moved weaker by 60 points or 0.34 per cent to Rp 17,728 per US dollar, compared to the previous close of Rp 17,668 per US dollar.

The President Director of PT Doo Financial Futures, Ariston Tjendra, assessed that the rupiah’s weakness was triggered by the impact of the Middle East conflict, which has spilled over into crude oil prices and US inflation.

“This is still the euphoria of the Middle East conflict spreading everywhere, such as the rise in crude oil prices and inflation,” he said in Jakarta on Tuesday (19/5/2026).

This rise in US inflation expectations has increased US bond yields. US government bond yields for the 2-year tenor were recorded at 4.105 per cent, the 10-year at 4.631 per cent, and the 30-year at 5.159 per cent. This increase represents a new high for 2026.

He noted that rising US yields have driven the strengthening of the US dollar against other currencies, including the rupiah.

Regarding domestic sentiment, pressure from crude oil prices exceeding 100 US dollars per barrel has caused the price of public necessities to rise. Consequently, the import of crude oil has increased the demand for US dollars within the country.

“Additionally, this is dividend month; the repatriation of dividends abroad, which increases the demand for US dollars, is also putting pressure on the rupiah,” Ariston added.