Rupiah Opens Weaker as US Dollar Rises to Rp17,870
The Rupiah opened weaker against the US Dollar in trading on Wednesday (3/6/2026). According to Refinitiv data, the Rupiah began trading in the red, depreciating by 0.22% to the level of Rp17,870/US.ThisdeclinefollowstheprevioustradingsessiononTuesday(2/6/2026), wheretheRupiahhadmanagedtoclose0.20, breaking a five-day losing streak.
Meanwhile, the US Dollar Index (DXY), which measures the strength of the greenback against six major world currencies, remained stable. As of 09:00 WIB, the DXY stood at the 99.233 level. The Rupiah’s movement today is expected to be heavily influenced by US Dollar dynamics in the global market. The US Dollar has tended to strengthen as tensions in the Middle East resurface, driving demand for the greenback as a safe-haven asset.
The US Central Command stated that Iran launched ballistic missiles towards countries in the region, although they all failed to hit their targets. Conversely, US forces were reported to have conducted strikes on Qeshm Island in response to attempted attacks from Tehran. These recent attacks occurred while diplomatic talks between Iran and the United States remain at a deadlock, causing market sentiment to turn cautious and keeping the US Dollar strong.
Prolonged warfare in the Middle East, coupled with high energy prices, has led investors to increase expectations regarding potential monetary policy tightening by several major central banks this year. This contrasts with the pre-conflict period, when markets were more focused on the possibility of interest rate cuts.
Domestically, Bank Indonesia (BI) has officially tightened the limit for US Dollar purchases without underlying documents. The purchase limit, previously US$50,000 per month per participant, has been reduced to US$25,000 per month per participant. This regulation officially came into effect on 2 June 2026.
The provision is contained in the Regulation of the Member of the Board of Governors (PADG) Number 11 of 2026, concerning the Second Amendment to PADG Number 11 of 2024 regarding Foreign Exchange Market Transactions. This PADG was signed by BI Deputy Governor Thomas Djiwandono on 26 May 2026.
“The specific threshold for cash-based foreign exchange purchases against the Rupiah, as referred to in Article 22 paragraph (1) letter a number 1, is US$25,000.00 or its equivalent per month per foreign exchange market participant,” stated Article 25 of PADG Number 11 of 2026. This policy is one of Bank Indonesia’s steps to maintain foreign exchange market stability, particularly amidst high external pressures and the ongoing volatility of the US Dollar.