Rupiah strengthens as US PPI comes in lower than expected

Jakarta (ANTARA) - The rupiah moved 6 points or 0.03 per cent higher on Friday morning to Rp17,980 per US dollar, compared to the previous close of Rp17,986 per US dollar.

PermataBank Chief Economist Josua Pardede said the rupiah strengthened as the United States Producer Price Index (PPI) came in below market expectations.

“The PPI was lower than market expectations, reinforcing confidence that inflationary pressures in the US continue to ease,” he told ANTARA in Jakarta on Friday.

Citing Anadolu, US producer prices unexpectedly fell in June 2026 for the first time in almost a year, largely due to lower energy costs.

The situation prompted the majority of Asian currencies to strengthen against the dollar, including the rupiah.

Meanwhile, geopolitical tensions in the Middle East are rising after Iran launched an attack on a US tanker near Iran’s oil export terminal.

The US also carried out strikes on Iranian military assets, which prompted Iran to launch missile attacks on US military bases in Kuwait and Jordan.

From an economic data perspective, US Retail Sales grew 0.2 per cent month on month (MoM) in June 2026, slowing compared to the previous month’s growth, which was revised upward to 1.0 per cent MoM, and in line with market expectations.

Based on these factors, the rupiah is expected to move within a range of Rp17,975 to Rp18,100 per US dollar.