Rupiah hits record low against US dollar at Rp17,730

Rupiah closed its first trading day of the week on Monday (25 May 2026) weaker against the US dollar, according to Refinitiv data. The Indonesian currency initially opened in positive territory at Rp17,680 per dollar, gaining 0.06%, but reversed course to close 0.23% lower at Rp17,730 – a new all-time low closing level.

Despite the US dollar index (DXY) falling 0.17% to 99.070 by 3pm WIB, the rupiah failed to capitalise on the global greenback’s weakness, indicating persistent pressure on the local currency.

Global markets saw the dollar weaken amid prospects of a US-Iran peace deal. Last weekend, US President Donald Trump stated that a mutual agreement with Iran was largely negotiated, with progress reported by both nations and Pakistan-based mediators. However, Trump reiterated that US sanctions on Iranian vessels in the Strait of Hormuz would remain in place until a formalised, certified, and signed agreement is reached.

Domestically, Finance Minister Purbaya Yudhi Sadewa affirmed efforts to strengthen the rupiah against the dollar, targeting a rate of Rp15,000 per dollar from the current level above Rp17,000. New measures, including the Devisa Hasil Ekspor Sumber Daya Alam (DHE SDA) regulation effective 1 June 2026, aim to retain more foreign exchange earnings from commodity exports like coal and palm oil within Indonesia.

The government has also stabilised the rupiah through bond market interventions, purchasing around Rp2.2 trillion in secondary market government securities (SBN) last week to maintain stable yields amid foreign capital outflows.