Rupiah Faces Increasing Pressure, US Dollar Closes Near Rp17,100

Jakarta, CNBC Indonesia - The rupiah exchange rate weakened again against the US dollar on trading Tuesday (7/4/2026). According to Refinitiv data, the rupiah closed in the red with a 0.35% depreciation to Rp17,090/US.ThispositiononceagainsetarecordastheweakestclosingleveleverfortheGarudacurrency.Fromthestartoftrading, pressureontherupiahwasalreadyevident.Therupiahopenedwithaslight0.06, then continued to be pressured, briefly touching Rp17,105/US$ before slightly improving at the close. Meanwhile, the US dollar index (DXY) at 3:00 PM WIB was observed strengthening 0.06% to 100.039. The rupiah’s movement throughout today’s trading was influenced by external and domestic sentiments. Externally, the US dollar remained stable amid cautious market participants continuing to monitor the escalation of the Iran conflict. Market attention was focused on the latest deadline from US President Donald Trump regarding the reopening of the Strait of Hormuz. Although reports emerged of last-ditch efforts to push for a ceasefire, global markets so far remained overshadowed by uncertainty. This situation triggered concerns over higher inflation, altering expectations for global interest rate directions, while also making the US dollar sought after again as a safe-haven asset. As a result, the room for strengthening in other countries’ currencies, including the rupiah, became increasingly limited. Domestically, sentiment came from fiscal developments after the government revealed plans to raise this year’s state budget deficit target. Finance Minister Purbaya Yudhi Sadewa stated that the state revenue and expenditure budget (APBN) deficit target would be raised from the original 2.68% to 2.9%. Purbaya explained that the government had conducted an exercise or recalculation of this year’s APBN deficit. This change would later be included in the semester report and reported to the House of Representatives (DPR RI). “So if it’s over 10%, that’s fine, right.. just semester report,” said Purbaya during lunch with the media at the Ministry of Finance (Kemenkeu) office on Tuesday (7/4/2026). Nevertheless, the government emphasised that the deficit would still be kept from breaching the 3% limit against gross domestic product (GDP).