Rupiah Opens Stronger This Morning, US Dollar Falls to Rp17,940

The rupiah exchange rate managed to start trading ahead of the weekend with a strengthening against the United States dollar. Referring to Refinitiv data, the Garuda currency at the opening of trading on Friday (3/7/2026) strengthened 0.27% or appreciated to the level of Rp17,940/US.Thisstrengtheningreversedtherupiah′spositionatthepreviousclose.OnThursday(2/7/2026), therupiahcloseddown0.32. Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was observed weakening 0.05% to 100.803 as of 09.00 WIB. The rupiah’s movement on the last trading day of the week is expected to still be influenced by external factors, particularly the dynamics of the US dollar in the global market, which is currently under pressure. The greenback weakened this morning, continuing a sharp correction in the previous session. The DXY previously closed down 0.53%, as market expectations for a near-term interest rate hike by the US central bank (The Federal Reserve) eased. The weakening of the US dollar indicates that selling pressure on greenback-denominated assets is starting to increase. This condition makes room for other currencies, including the rupiah, to strengthen more openly. Pressure on the US dollar emerged after US labour data showed signs of cooling. US job growth in June was recorded as slowing more than expected, while payroll increases for the previous two months were also revised lower. This data caused the market to reconsider the chances of a Fed rate hike for the remainder of the year. Throughout June, the US economy added only 57,000 jobs, far below market expectations of 110,000 jobs. With weaker labour data, expectations for a near-term rate hike also eased. This ultimately pressured the US dollar and gave room for the rupiah to open trading in the green zone.