Rupiah Continues to Plummet to Rp 18,109, Potential to Hit Rp 19,000 by End of June Due to Middle East Geopolitics

Jakarta, VIVA – The exchange rate of the Rupiah against the US Dollar is predicted to remain volatile, having closed weaker in today’s trading. According to the Jakarta Interbank Spot Dollar Rate (Jisdor) from Bank Indonesia, the Rupiah stood at Rp 18,039 on Friday, 5 June 2026, remaining stagnant from the previous level recorded on Thursday, 4 June 2026.

In spot market trading on Monday, 8 June 2026, as of 09:05 WIB, the Rupiah was being traded at Rp 18,109 per US Dollar. This represents a decline of 73 points, or 0.40 per cent, from its previous position of Rp 18,036 per US Dollar.

Economic and money market observer, Ibrahim Assuaibi, stated that the Rupiah exchange rate against the US Dollar could breach the Rp 19,000 level per US Dollar by the end of June 2026. He predicted that the possibility of the Rupiah hitting the Rp 19,000 mark is inseparable from the potential for increasing geopolitical tensions in the Middle East and the expectation of high interest rates in the US.

“If geopolitical turmoil continues, and speculation persists that the Fed will maintain high interest rates or even raise them at the end of June, then the Rupiah is highly likely to reach Rp 19,000,” Ibrahim noted in his daily research on Monday, 8 June 2026.

According to him, the primary factor currently weighing on the Rupiah’s movement is the rising geopolitical uncertainty in the Middle East. The situation has intensified following attacks between the US and Iran, triggering market concerns regarding regional stability, particularly around the Strait of Hormuz, which serves as a vital route for global oil trade.

“A ceasefire between the US and Iran is unlikely to last long, as the US itself has stated that their airbases in the Middle East have sustained heavy damage,” said Ibrahim. He added that while the Rupiah remains volatile, it closed within the range of Rp 17,950 to Rp 18,250.