Rupiah Opens Weaker as US Dollar Breaks Above Rp17,900
The Rupiah entered the final trading session of the week under pressure. The Indonesian currency opened weaker against the US Dollar on Friday (25/09/2026).
According to Refinitiv data, the Rupiah depreciated by 0.08% to the level of Rp17,900/US$ at the start of trading. This decline continues the trend from the previous day; on Thursday (24/09/2026), the Rupiah closed down 0.51% at the Rp17,885/US$ level. The US Dollar had also touched Rp17,900 during yesterday’s session before the Rupiah recovered slightly towards the close.
Meanwhile, the US Dollar Index (DXY), which measures the strength of the greenback against six major world currencies, was observed to have weakened slightly by 0.02% to 101.265 as of 09:00 WIB. Despite this correction, the DXY remains at a high level after gaining 0.19% at Thursday’s close.
The Rupiah’s movement today is expected to remain influenced by the strength of the US Dollar in the global market. High demand for dollar-denominated assets is narrowing the room for appreciation for other currencies, including the Rupiah.
The US Dollar previously reached a two-month high alongside rising US Treasury yields and strengthening expectations of interest rate hikes by the Federal Reserve (The Fed). The 30-year US Treasury yield reached its highest level since June 2004, while the 10-year US Treasury yield hit its highest position in nearly two decades.
US economic data has further bolstered expectations of tightening. Initial jobless claims fell to 197,000 last week, lower than the market forecast of 201,000, indicating that the US labour market remains resilient. Inflation concerns have also resurfaced after oil prices surged by almost 4%, following Houthi missile attacks on Saudi Arabia which raised fears regarding energy supply disruptions.
Several Fed officials have also left the door open for further interest rate hikes if inflation does not subside. New York Fed President John Williams and Philadelphia Fed President Anna Paulson suggested that additional tightening might still be necessary. According to CME FedWatch, the probability of at least a 25 basis point rate hike at the Fed’s October meeting has reached 68.6%, up from 55.4% the previous week.
Nevertheless, Bank Indonesia (BI) has ensured it will remain active in the market to maintain the stability of the Rupiah in line with economic fundamentals. “Bank Indonesia continues to be present in the market to maintain exchange rate stability according to fundamentals and to ensure market mechanisms function well,” stated Erwin Gunawan Hutapea, Head of the Monetary Management and Securities Assets Department at BI, in an official statement on Friday.
BI is also strengthening its market-oriented monetary operation strategies. This step is being taken to manage the interest rate structure in the money market while simultaneously increasing the effectiveness of exchange rate stabilisation. Coordination and communication with corporations and market participants are also being strengthened, aimed at encouraging foreign capital inflows and managing domestic foreign exchange demand.