Rupiah Edges Slightly Stronger This Afternoon, US Dollar Parks at Rp17,860
The rupiah exchange rate managed to reverse pressure and closed stronger against the United States (US) dollar in trading on Thursday (13/8/2026).
Referring to Refinitiv data, the rupiah ended trading with a slight strengthening of 0.03% to a position of Rp17,860/US$. This strengthening also broke the weakening trend that had lasted for the previous two trading days.
The rupiah actually started trading in the red zone with a weakening of 0.06% to a level of Rp17,875/US$. The Garuda currency then reversed direction and strengthened by 15 points from the opening position to the close.
Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was observed at 15.00 WIB to have weakened slightly by 0.03% to a position of 99.984.
The rupiah’s recovery took place alongside the weakening of the US dollar after Uncle Sam’s inflation showed a slowdown. US inflation on an annual basis fell to 3.4% in July from 3.5% in June, while core inflation eased to 2.5% from the previous 2.6%.
This data reduced the likelihood of the US central bank (The Federal Reserve/The Fed) raising interest rates in the near future. The market now calculates the probability of a rate hike in September at 40%, down from 44% before the inflation data was announced and 55% a week earlier.
However, pressure on the dollar remains limited because market participants assess that the inflation slowdown is not yet sufficient to change the Fed’s stance. The dollar also received support from high US government bond yields and the ongoing tensions between the US and Iran.
Meanwhile, the rupiah from within the country still faces the risk of foreign outflows after the August MSCI evaluation removed a number of Indonesian stocks from the index list. This change in composition could potentially cause investors who follow the MSCI index to adjust their portfolios.
However, this potential pressure has not been able to hold back the rupiah’s recovery in today’s trading. The weakening of the DXY provided room for the Garuda currency to turn stronger after being pressured at the start of trading.