Rupiah Continues to Weaken, Reaching Rp 17,658 per US Dollar on Monday Morning
The rupiah exchange rate this Monday morning (18/5/2026) stood at the level of Rp 17,658 per US dollar. This figure represents a weakening of approximately 61 points, or 0.35 per cent, compared to the previous close of Rp 17,597.
Lukman Leong, a currency analyst at Doo Financial Futures, stated that the rupiah weakened following the outcome of the meeting between US President Donald Trump and Chinese President Xi Jinping, which failed to provide significant solutions regarding the US-Iran war.
“The rupiah has the potential to weaken further in response to the global risk-off sentiment observed on Friday (15/5/202 $ ext{6}$). The US dollar strengthened significantly amidst a sell-off of all assets, including bonds, stocks, crypto, and currencies, due to investor disappointment with the Xi-Trump meeting, which did not sufficiently address or provide solutions for the US-Iran war,” he said in Jakarta on Monday.
During the meeting between Xi and Trump, China advocated for the immediate reopening of the Strait of Hormuz while maintaining a ceasefire. Chinese Foreign Minister Wang Yi stated that China continues to strive to promote peace and facilitate negotiations, and will continue to play its role in pushing for an immediate end to the war and restoring peace in the Middle East region.
Nevertheless, Iranian Foreign Minister Abbas Araghchi noted that while the Pakistan-led mediation efforts involving the US have not failed, they face a “very difficult path” due to mistrust towards Washington and contradictory American messages. Araghchi stated that Iran remains committed to diplomacy despite facing an “unstable” ceasefire following the recent war involving the US and Israel against Iran.
Quoting Anadolu, Trump himself expressed uncertainty as to whether an agreement would be reached soon between the US and Iran, as negotiations regarding the nuclear programme and the ongoing conflict continue without resolution. According to several media reports, Trump is expected to decide within the coming hours whether to continue attacks against Iran, as talks aimed at ending the conflict and addressing Iran’s nuclear programme have so far failed to reach an agreement.
This sentiment has caused global crude oil prices to rise again. Although China and the US agreed on several areas of cooperation, the market response was not as strong as the concerns regarding high global oil prices.
“Both countries and the world want the war to end, but it seems difficult for Iran to relinquish its nuclear ambitions, so the Xi and Trump meeting focused more on the bilateral relationship between the two nations,” concluded Lukman.