Rupiah Opens Weaker as US Dollar Rises to Rp17,780 This Morning
The rupiah exchange rate lost momentum against the US dollar at the opening of trading early this week. The ‘Garuda’ currency moved back into the red after experiencing a slight appreciation at the end of last week.
According to Refinitiv data, the rupiah began trading on Monday (21/09/2026) with a 0.28% decline to the position of Rp17,780/US$.
This movement reverses the gains seen on Friday (18/09/2026), when the rupiah appreciated by 0.03% to end trading at the level of Rp17,730/US$.
Meanwhile, the US Dollar Index (DXY), which measures the strength of the greenback against six major world currencies, was observed to be stable at 100.217 as of 09:00 WIB.
The rupiah’s movement at the start of this week is expected to be influenced by external dynamics, particularly developments in the Middle East conflict and the rise in global bond yields.
Investor risk appetite remains constrained after several major central banks raised interest rates and signalled that further tightening is still necessary to control inflation.
US two-year Treasury yields rose by 5 basis points to 4.743%, the highest level since July 2024. The 10-year yield also increased by 5 basis points to 4.996%, while the 30-year yield rose by 3 basis points to 5.327%.
This rise in yields may maintain the attractiveness of US dollar-denominated assets. However, the dollar index ended Friday’s trading with stable movement, which may provide limited room for the rupiah to strengthen.
Tensions in the Middle East are also a point of concern after the Houthi group in Yemen stated they had attacked several sensitive locations in Riyadh, Saudi Arabia, on Saturday. Iran and the US have also exchanged threats.
While US crude oil prices closed down 1.58% last Friday, recent developments in the Middle East have the potential to cause energy price volatility at the start of this week.
The market is also awaiting the outcome of the meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in New York. This meeting could pave the way for several agreements ahead of the meeting between US President Donald Trump and Chinese President Xi Jinping in Washington this coming Thursday.