Rupiah Strengthens After Long Holiday, US Dollar Falls to Rp16,905
Jakarta, CNBC Indonesia — The rupiah exchange rate closed stronger against the US dollar on Wednesday (25/3/2026), which was also the first trading day after the long Eid al-Fitr holiday.
According to Refinitiv data, the rupiah closed trading at Rp16,905/US, strengtheningby0.41.
Although part of the gain was pared back, the rupiah still managed to continue its positive trend from the last trading session before the long holiday. Previously, on Tuesday (17/3/2026), the rupiah also closed with a slight strengthening of 0.06% at Rp16,975/US$.
Meanwhile, the US dollar index (DXY), which measures the strength of the US dollar against six major world currencies, was observed weakening by 0.08% to 99.358 at 3:00 PM WIB.
The rupiah’s strengthening in today’s trading was still largely influenced by external factors, particularly the weakening of the US dollar in global markets.
The US dollar index remains under pressure following reports that the United States is seeking talks with Iran to end the conflict. US President Donald Trump also stated that Iran has shown positive signals in negotiations related to energy flows through the Strait of Hormuz.
At the same time, several reports indicate that Washington is pushing for a temporary ceasefire to open room for negotiations with Iran. Hopes of easing the conflict are also pressuring oil prices, providing some relief to markets that previously feared a surge in energy prices would trigger higher inflation and push for interest rate hikes.
This situation has caused the US dollar to weaken and given room for other countries’ currencies, including the rupiah, to move stronger.
However, the market is not fully calm yet. Iran has denied any direct negotiations with the US, while several Gulf countries are reportedly ready to become more involved in the conflict. This means global uncertainty remains high.
In addition, the market is still monitoring the direction of US monetary policy. US central bank Governor (The Federal Reserve/The Fed) Michael Barr stated that The Fed may still need to maintain high interest rates for some time to curb inflation. This statement signals that the room for rupiah strengthening could remain limited if pressure from the US dollar increases again.