Rupiah Strengthens to 17,827 per US Dollar in Morning Session

JAKARTA – The rupiah opened stronger against the US dollar in today’s spot market trading on Monday, 1 June 2026. At 9:20 AM WIB, the rupiah was at 17,855 per US dollar. The currency strengthened by 26 points, or 0.15%, compared to Friday’s close of 17,881 per US dollar. It continued to strengthen to 17,827 per US dollar by 9:43 AM WIB, a gain of 54 points or 0.30%. However, the rupiah is expected to face pressure in the first week of June 2026. “The rupiah could reach 18,150 per US dollar in the first week of June,” he told media on Sunday, 31 May 2026. He cited tensions in the Strait of Hormuz in Iran as a key factor affecting financial markets, amid ongoing US-Iran negotiations. Uncertainty over uranium enrichment clauses in the proposed deal has kept the region volatile. “The decision on the deal lies with US President Donald Trump, who is expected to announce it this week. Whether the peace agreement will be approved without uranium enrichment is what continues to fuel tensions in the Strait of Hormuz,” he explained. Additionally, warnings from UK maritime authorities about ongoing shipping restrictions around Iran have added to market concerns. This situation could disrupt global supply chains and push up shipping costs. “This will cause transport delays, leading to persistent inflation,” he said. Ibrahim noted that inflation pressures driven by rising energy prices, particularly gasoline in the US, could lead the Federal Reserve to maintain high interest rates for longer. He added that further rate hikes remain possible if inflation pressures do not ease. “This is what has caused the US dollar to strengthen significantly,” he concluded.