Rupiah Remains Weak - Briefly Collapsed, But Not as Bad as Other Asian Currencies

The majority of Asian currencies weakened against the US dollar throughout this week. However, the pressure on the rupiah was relatively more limited compared to many other regional currencies. The rupiah exchange rate closed stronger against the US dollar in the final trading session of the week on Friday (24/4/2026). According to Refinitiv data, the rupiah ended trading in positive territory with a 0.53% appreciation to the level of Rp17,190/US.ThisstrengtheningbroughttherupiahbackbelowthepsychologicallevelofRp17, 200/US, after it had closed at Rp17,280/US$ the previous day, marking the weakest closing position ever. Despite managing a rebound at the end of the week, the rupiah still recorded a weekly weakening of 0.06%. Throughout this week, only the Taiwanese dollar managed to strengthen against the US dollar, by 0.05%. Meanwhile, the rupiah was one of the currencies with the slightest weakening in the region. Below the rupiah, the Vietnamese dong weakened by 0.14%, the Chinese yuan fell by 0.28%, and the Malaysian ringgit weakened by 0.30%. Greater pressure was evident on the Japanese yen, which dropped 0.48%, the Singapore dollar 0.49%, and the South Korean won 0.65%. The deepest weakening occurred with the Thai baht, which plunged 1.32%, followed by the Indian rupee at 1.77%, and the Philippine peso, which became the worst-performing currency in Asia this week after plummeting 1.81%. The movement of Asian currencies this week was still heavily influenced by the dynamics of the US dollar, which was once again sought as a safe-haven asset amid global uncertainties. The US dollar index (DXY) closed lower by 0.24% at 98.533 on Friday (24/4/2026). Nevertheless, on a weekly basis, the DXY still recorded a 0.44% strengthening. This means that although the greenback corrected somewhat at the end of the week, overall, the US dollar still showed strengthening over the week. This indicates that demand for safe-haven assets remains quite high, as the market continues to monitor developments in the US-Israel conflict with Iran. Throughout the week, the US dollar fluctuated up and down. On one hand, the greenback was buoyed by optimism that a peace agreement could soon be reached. On the other hand, concerns that the war might last longer and disrupt energy supplies kept market participants cautious. Because the outcome is still unclear, many investors chose to hold back from taking large positions. As a result, market movements tended to be limited and still seeking a new direction. Market hopes emerged after Iran’s Foreign Minister Abbas Araqchi was scheduled to be in Islamabad on Friday, a location that had previously hosted peace talks with the United States. This development opens the possibility that negotiations could resume after they collapsed earlier in the week.