Rupiah Strengthening Still Underpinned by Adequate Foreign Reserves
Jakarta (ANTARA) - The rupiah exchange rate strengthened by 63 points, or 0.35 per cent, to Rp18,065 per US dollar at Friday’s close, from Rp18,128 previously.
Muhammad Amru Syifa, Head of Research and Development at the Indonesia Commodity & Derivatives Exchange (ICDX), said the rupiah’s strengthening was still supported by adequate foreign exchange reserves.
“The rupiah is still underpinned by sufficient foreign exchange reserves as well as Bank Indonesia’s commitment to maintaining exchange rate stability. Both factors are expected to dampen pressure should turmoil in the global financial markets intensify again,” he told ANTARA in Jakarta on Friday.
Indonesia’s foreign exchange reserves were recorded rising to US$145.6 billion at the end of June 2026, up from US$144.9 billion the previous month.
According to him, the rupiah still has room to strengthen next week if pressure on the US dollar continues. However, the gains are expected to be limited as investors remain awaiting several key economic data releases from the United States, particularly core inflation (Core CPI), which will signal the direction of Federal Reserve interest rate policy.
“The sentiment that will influence the rupiah’s movement next week is the release of US Core CPI data. If core inflation comes in higher than forecast, market expectations of higher-for-longer Fed rates will strengthen again. That could drive a stronger US dollar and put pressure on the rupiah,” Amru explained.
Conversely, he continued, if inflation comes in below expectations, the US dollar is more likely to weaken, giving the rupiah room to appreciate.
Markets will also be watching developments in the Middle East conflict, as these could affect global oil prices and investor interest in safe-haven assets. Likewise, foreign capital flows and Bank Indonesia’s stabilisation measures will remain important factors in determining the rupiah’s short-term direction.
The rupiah is therefore forecast to move within a range of Rp18,000-Rp18,128 per US dollar over the coming week.
Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened today to Rp18,069 per US dollar, from Rp18,090 previously.