Rupiah Strengthens to Rp17,750 per US Dollar

Jakarta, CNBC Indonesia - The rupiah exchange rate began the week on Monday (15/6/2026) with a strengthening against the United States (US) dollar. Referring to Refinitiv data, the Garuda currency appreciated 0.64% to a level of Rp17,750 per US dollar this morning. This strengthening continues the positive performance from the end of last week’s trading. On Friday (12/6/2026), the rupiah managed to close sharply higher by 0.61% at Rp17,865 per US dollar. Meanwhile, the US dollar index (DXY), which measures the strength of the greenback against six major world currencies, was observed weakening 0.18% to 99.569 as of 09.00 WIB. The rupiah’s movement at the start of the week received a tailwind from the weakening of the US dollar in global markets. The DXY weakened following news that the United States and Iran had agreed on a peace framework. The news caused oil prices to fall and boosted demand for riskier assets. US and Iranian officials stated on Sunday local time that both countries had agreed on a framework to end the war, halt the US blockade of Iran, and reopen the Strait of Hormuz. Oil prices subsequently fell, with Brent crude correcting more than 4% to US$83.82 per barrel. Nevertheless, market players remain cautious. US President Donald Trump told the New York Times on Sunday that if Iran fails to reach a final nuclear deal with the US, Washington could resume military strikes against Tehran or position the US as the ‘guardian of the Middle East’ in exchange for 20% of the region’s revenue. This condition ultimately reduced market appetite for the US dollar as a safe-haven asset. As demand for the US dollar declines, room for appreciation of other currencies, including the rupiah, becomes more open. Domestically, positive sentiment also came from the strengthening cooperation between Bank Indonesia (BI) and China’s central bank, the People’s Bank of China (PBOC). BI and PBOC held a high-level Joint Work Program meeting on Wednesday (11/6/2026) in Shanghai, China. The meeting was directly attended by BI Governor Perry Warjiyo and PBOC Governor Pan Gongsheng. The meeting produced six important points. One of them is synergy to strengthen the financial resilience of each country while contributing to broader regional financial stability. This cooperation also supports the efforts of both central banks in maintaining exchange rate stability.