Rupiah strengthens as US Dollar undergoes correction

Jakarta (ANTARA) - The Rupiah exchange rate against the US Dollar at the opening of trading on Tuesday moved upwards by 7 points, or 0.04 per cent, to Rp17,715 per US Dollar compared to the previous close of Rp17,722 per US Dollar.

Lukman Leong, an analyst at Doo Financial, stated that the strengthening of the Rupiah was influenced by a correction in the US Dollar. “The Rupiah is expected to open flat with the potential for limited strengthening against the correcting US Dollar,” he told ANTARA in Jakarta on Tuesday.

This correction is caused by concerns regarding the US government’s planned long-term bond buyback, which is set to commence shortly. Previously, the US Treasury announced an increase in the size of long-term bond buybacks to at least $4 billion per operation starting 9 September 2026, up from the previous $2 billion.

Regarding domestic sentiment, investors tend to adopt a ‘wait and see’ approach while awaiting Indonesia’s inflation and trade data this afternoon. “Trade data is expected to show a deficit of approximately $300 million due to a surge in imports (driven by high crude oil prices) which is projected to rise by 24 per cent, while year-on-year inflation is expected to rise from 2.88 per cent to 3.13 per cent,” said Lukman.

Based on these factors, the Rupiah is predicted to fluctuate between Rp17,650 and Rp17,800 per US Dollar.