Rupiah Runs Out of Steam, US Dollar Climbs Back to Rp17,830
The rupiah exchange rate closed weaker against the US dollar on Tuesday (11/8/2026), snapping a four-day strengthening trend.
According to Refinitiv data, the rupiah depreciated 0.45% to Rp17,830/US.IntheprevioussessiononMonday(10/8/2026), theGarudacurrencyhadclosed0.75.
Pressure on the rupiah was evident from the start of trading. The rupiah opened 0.17% weaker at Rp17,780/US, thenmovedwithinarangeofRp17, 770–Rp17, 850/US throughout the day.
Meanwhile, the US dollar index (DXY), which measures the greenback against six major world currencies, was observed strengthening 0.07% to 99.883 at 15.00 WIB.
The DXY reversed course after weakening 0.06% in the morning. The movement extended the 0.27% gain posted by the dollar index in the previous session.
Pressure on the rupiah came as market participants awaited the announcement of US consumer inflation for July on Wednesday (12/8/2026) local time. The data will provide the latest clue in estimating the direction of the US central bank’s (The Federal Reserve/The Fed) interest rate policy.
The US dollar had earlier received support from oil prices rising more than 4% yesterday. Energy prices increased after Iran and the US exchanged compensation demands, reducing hopes for a near-term agreement to reopen the Strait of Hormuz.
The rise in oil prices renewed concerns about US inflationary pressure. However, room for dollar strengthening remains limited by employment data that was far weaker than expected.
The market now prices in a 52% chance of a Fed rate hike in September, down from 67% a week earlier.
Domestically, Bank Indonesia (BI) reported that retail sales in June 2026 grew 0.7% month-on-month after contracting 1.5% in May. Growth was supported by sales of other goods, spare parts and accessories, and household equipment, amid sustained demand during the National Religious Holiday (HBKN) period and school holidays.
The market is also still observing the leadership transition process at BI. Commission XI of the Indonesian House of Representatives (DPR RI) will schedule a fit and proper test for Destry Damayanti as the sole candidate for BI Governor after the DPR recess period ends.
Destry currently serves as Acting Governor of BI after Perry Warjiyo resigned on 25 July 2026. The certainty of the fit and proper test schedule is still awaiting coordination among Commission XI DPR leaders.