Rupiah hits Rp17,728 per US dollar, driven by spillovers from the Middle East conflict

The rupiah exchange rate on Tuesday at 11.02 WIB weakened by 60 points or 0.34 percent to Rp17,728 per US dollar, compared with the previous close at Rp17,668 per US dollar.

Ariston Tjendra, President Director of PT Doo Financial Futures, said the rupiah’s weakness was triggered by the impact of the Middle East conflict which spilled over into crude oil prices and US inflation.

"This is still the euphoria of the Middle East conflict spreading, such as the rise in crude oil prices and inflation," he told ANTARA in Jakarta on Tuesday.

The rise in US inflation expectations has pushed up yields on US government bonds. The 2-year yield stood at 4.105 percent, the 10-year at 4.631 percent, and the 30-year at 5.159 percent. This increase marks a new high for 2026.

According to him, higher US yields have strengthened the dollar against other currencies, including the rupiah.

Looking at domestic sentiment, pressure from crude oil prices above USD100 per barrel has raised the cost of living. Consequently, crude oil imports increase demand for the US dollar on home soil.

"Additionally, it is dividend season; repatriation of dividends abroad increases demand for the US dollar, which also puts pressure on the rupiah," Ariston said.