Rupiah Pressured by Global and Domestic Issues, CouldHit Rp 17,900 per US Dollar

Jakarta, Kompas.com - External and domestic pressures continue to weigh on the rupiah’s exchange rate today, Thursday (28 May 2026), with the currency potentially breaching Rp 17,900 per US dollar. Morning trading saw the rupiah weaken by approximately 70 points to around Rp 17,870 per US dollar.

Currency and commodity analyst Ibrahim Assuaibi said the pressure on the rupiah remains substantial, with depreciation expected to persist until the close of trading. He cited heightened geopolitical tensions in the Middle East and Europe, particularly between the US and Israel, which have raised concerns over regional stability and global energy supply. Additionally, the Russia-Ukraine conflict has further increased uncertainty in global financial markets.

These conditions have prompted global investors to seek safe-haven assets such as the US dollar. West Texas Intermediate (WTI) crude oil prices have risen to around $96 per barrel, potentially fueling global inflation, including in the US. This has raised expectations that the Federal Reserve will keep interest rates elevated for longer.

The strengthening US dollar, driven by these rate expectations, has added further pressure on emerging market currencies, including the rupiah. Domestically, Assuaibi highlighted high demand for US dollars to cover oil imports, corporate dividend payments, and maturing foreign debt obligations. He also noted capital outflows into foreign currency instruments as investors seek safer havens amid market uncertainty.