Rupiah Opens at Rp18,050 per US Dollar, Breaching Psychological Level

The Indonesian rupiah opened in the red against the US dollar this morning. According to Refinitiv data, at the opening of trade on Thursday (9/7/2026), the rupiah depreciated by 0.33% to Rp18,050 per US dollar. With this opening, the rupiah has again breached the psychological level of Rp18,000/US.Thispositionfollowstheprevioussession′sclose, wheretherupiahhadweakened0.11. Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major currencies, was observed to have edged up 0.02% to 101.00 at 09:00 WIB. The rupiah’s movement today will continue to be influenced by external dynamics, particularly the direction of the US dollar in global markets. The greenback’s strengthening comes amid renewed tensions in the Gulf region, which have boosted demand for safe-haven assets. Although the movement is not sharp, the position indicates the US dollar remains quite strong as the market re-evaluates geopolitical risks and their impact on energy prices. Higher energy prices could potentially rekindle inflationary pressures and affect expectations regarding the US central bank’s (The Federal Reserve) interest rate policy. The market assesses that a surge in oil prices could accelerate the timing of a Fed rate hike. This condition supports the US dollar as the market recalculates the risk of higher US interest rates. Tensions escalated after the US military launched new strikes on Iran, just hours after President Donald Trump stated that a tentative deal to end the war had concluded on Wednesday afternoon. This development caused oil prices to move sharply higher. Additionally, the minutes from the Fed’s June meeting revealed a divergence of views, with a hawkish tilt among internal members. Concerns over persistently high inflation have led the market to increase its expectations for the probability of a rate hike this year.