Rupiah Opens at Rp18,033 per US Dollar
Jakarta, VIVA – The rupiah weakened against the US dollar at the opening of trading on Thursday, 22 October 2026.
The rupiah opened down 11 points, or 0.06 per cent, at Rp18,033 per US dollar, compared with the previous close of Rp18,022. Bloomberg data showed the spot rupiah had fallen further, by 0.19 per cent to Rp18,035, at 9.09am WIB. The pressure has put the psychologically important Rp18,000 level at increasing risk of being breached.
Why is the rupiah under continued pressure? Three key factors are cited:
- Brent crude surges to US$110
Brent crude rose 1.22 per cent to US$110.15 a barrel this morning. This poses a risk for Indonesia by increasing foreign-exchange needs for imports and adding to imported inflation. Food inflation is already at 5 per cent.
- MSCI concerns prompt foreign investors to leave
Like the Jakarta Composite Index (JCI), which fell 1.5 per cent this morning, the rupiah has been affected by MSCI’s plan to downgrade Indonesia’s capital market to Standalone Market status. Foreign investors recorded net sales of Rp528 billion in shares yesterday. If foreign investors withdraw, demand for dollars will increase.
- Bank Indonesia holds rates, but markets remain sceptical
Bank Indonesia held its BI-Rate at 5.75 per cent yesterday, while also reducing the reserve requirement ratio from 9 per cent to 7 per cent. Markets have viewed this stance as ambiguous. Offshore non-deliverable forward (NDF) trading had earlier pushed the rupiah down to Rp18,070.
CORE economist Yusuf Rendy Manilet forecast that the rupiah would trade in a range of Rp17,980 to Rp18,080 today, with a limited weakening bias.
Bank Indonesia has sought to support the currency through domestic non-deliverable forward (DNDF) instruments and spot-market intervention, and has attracted US$9.9 billion in capital inflows since June. However, while concerns over MSCI and high oil prices persist, the rupiah remains vulnerable.
The US dollar remains strong, with the DXY index at 101.7 and the 10-year US Treasury yield at 5.15 per cent, making dollar assets more attractive than rupiah-denominated assets.