Rupiah Performs Strongly, US Dollar Closes Down at Rp17,005
Jakarta, CNBC Indonesia - The rupiah exchange rate closed stronger against the US dollar on Wednesday (8/4/2026) trading, in line with the weakening of the US dollar in the global market.
According to Refinitiv data, the Garuda currency ended trading this afternoon in the green zone with a 0.50% appreciation to the level of Rp17,005/US$. This strengthening also broke the rupiah’s weakening trend that had occurred over three consecutive trading days.
Throughout the trading session, the rupiah opened even stronger at Rp16,970/US$, or a 0.70% gain. However, some of that strengthening was eroded until the closing position.
On the other hand, the US dollar index (DXY) at 3:00 PM WIB was observed to weaken sharply by 1.06% to the 98.800 position. This weakening brought the DXY back below the psychological level of 100.
The rupiah’s strengthening in today’s trading was mainly driven by external factors, namely the weakening of the US dollar in the global market following the announcement of a ceasefire between the United States and Iran.
The US dollar index fell to its lowest level in two weeks after US President Donald Trump said he had agreed to a two-week ceasefire with Iran. Previously, Trump had threatened to launch a broad attack on Iran’s civilian infrastructure if Tehran did not reopen the Strait of Hormuz.
However, less than two hours before the deadline expired, the market turned more optimistic after news emerged of a pause in the conflict. Trump also stated that the US had received a 10-point proposal from Iran that was deemed sufficiently viable as a basis for negotiations.
In addition, Iran was reported to be willing to reopen the vital Strait of Hormuz route for two weeks on the condition that all attacks are stopped. Israel is also said to have approved the ceasefire.
This situation encouraged market participants to shift to risk assets and pressured demand for the US dollar as a safe haven asset. As a result, other countries’ currencies, including the rupiah, gained room to strengthen.
Bank Indonesia (BI) also emphasised that its current focus is to maintain rupiah stability amid still high global uncertainties. BI Senior Deputy Governor Destry Damayanti said the central bank will optimise all monetary operation instruments to maintain exchange rate stability.
“In the midst of very high global uncertainties, stability is currently the top priority for Bank Indonesia (BI). To that end, BI will optimise the use of all monetary operation (OM) instruments it has and also OM policies to maintain exchange rate stability,” Destry said in a written statement on Tuesday (7/4/2026).
Destry added that BI consistently and measuredly conducts interventions in the spot market, Domestic Non-Deliverable Forward (DNDF), and Non-Deliverable Forward (NDF) in the offshore market.