Rupiah Strengthens, US Dollar Falls to Rp17,695

Jakarta, CNBC Indonesia - The rupiah exchange rate strengthened further against the US dollar in morning trade on Friday. The Indonesian currency even managed to break below the Rp17,700/US$ level.

According to Refinitiv data, at 10:40 WIB on Friday (21/8/2026), the rupiah appreciated 0.25% to Rp17,695/US$.

The strengthening was larger than at the market open. In the morning, the rupiah opened 0.14% stronger at Rp17,720/US$, then gained a further 25 points by 10:40 WIB.

The rupiah’s positive performance extended its gains from the previous two trading sessions. On Thursday (20/8/2026), the Indonesian currency closed 0.48% higher at Rp17,740/US$, after strengthening 0.14% the day before.

Meanwhile, the US dollar index (DXY) was seen weakening 0.10% to 98.799 at 09:00 WIB. The weaker dollar provided room for the rupiah to continue its appreciation.

The rupiah’s strengthening also came amid an improvement in Indonesia’s Balance of Payments (BOP). Bank Indonesia (BI) reported that the BOP deficit in the second quarter of 2026 narrowed to US$0.9 billion, far smaller than the US$9.1 billion deficit in the previous quarter.

“The capital and financial account recorded a surplus supported by increased inflows of direct investment and portfolio investment, thus supporting the maintained BOP performance,” BI wrote in its report on Friday (21/8/2026).

The inflow of foreign funds helped increase the supply of foreign exchange and supported the rupiah. However, the current account still recorded a higher deficit due to an increase in the oil and gas trade deficit and a decline in the non-oil and gas trade surplus.