Rupiah opens flat as US dollar holds at Rp17,730 this morning

The rupiah opened flat against the US dollar on Tuesday, 26 May 2026.

Referring to Refinitiv data, the rupiah opened at Rp17,730 per USD, unchanged from the previous close.

On Monday, 25 May 2026, the rupiah closed 0.23% weaker at Rp17,730 per USD, marking its all-time low against the US dollar.

Meanwhile, the US Dollar Index (DXY), which measures the greenback’s strength against six major global currencies, weakened. As of 9am WIB, the DXY fell 0.17% to 99.068.

The rupiah’s movement ahead of the extended Idul Adha holiday is expected to be influenced by various sentiments, particularly from global markets.

The US dollar weakened on Tuesday as investor optimism grew over the prospects of reaching an agreement to reopen the Strait of Hormuz and end the three-month Iran conflict.

Although the likelihood of a near-term agreement remains low, peace hopes have driven oil prices below $100 per barrel. This has eased pressure on emerging market currencies and improved investor appetite for riskier assets.

Recent developments show Iran’s chief negotiator and foreign minister are in Doha for talks with Qatar’s Prime Minister regarding a potential deal. US President Donald Trump described the talks with Iran as ‘going well’ but warned of new strikes if negotiations fail.

On the other hand, US Central Command stated it had carried out a new strike to protect its forces from Iranian threats.

Despite ongoing geopolitical tensions, markets are beginning to respond to the possibility of a path towards reopening the Strait of Hormuz. A reduction in extreme oil supply risks could ease pressure on inflation and global growth.

The weakening US dollar index indicates investors are reducing their positions in dollar-denominated assets. This could create room for other currencies, including the rupiah, to strengthen.