Rupiah Nears Rp17,800 per US Dollar Amid Middle East Geopolitical Tensions

JAKARTA, KOMPAS.com – The rupiah’s exchange rate in the spot market continued to weaken on Tuesday (26 May 2026). The Indonesian currency nearly touched Rp17,800 per US dollar.

According to Bloomberg data, at 11.14am WIB, the rupiah weakened by 46 points or 0.26% to Rp17,790 per US dollar.

Later, at 12.34pm WIB, the rupiah further weakened to Rp17,792 per US dollar.

Currency and commodities analyst Ibrahim Assuaibi said the rupiah’s afternoon weakening is increasingly worrying amid rising global geopolitical tensions and mounting external pressures.

“The rupiah continues to weaken today. We see that today’s currency depreciation is significant and deeply concerning,” Ibrahim told Kompas.com.

This situation could further pressure the rupiah, particularly as the domestic market faces a national holiday from Wednesday (27 May 2026). This prevents Bank Indonesia (BI) from optimally intervening in domestic markets, including the bond and financial markets.

Ibrahim noted that the rupiah’s weakening was primarily triggered by rising geopolitical uncertainty in the Middle East.

Markets had previously hoped for a peace deal between the US and Iran through negotiations initiated by Pakistan and Oman.

However, the US unexpectedly launched an attack on southern Iran.

“We see that Trump’s inconsistent statements are likely to reignite geopolitical tensions in the Middle East,” he added.

He added that the US is reportedly seeking to seize Iran’s uranium, a move Tehran would find unacceptable.

Meanwhile, internal Iranian politics are divided between factions seeking peace and hardliners aiming to continue the conflict.