Rupiah touches 17,792 against USD, forecast to weaken further tomorrow

The Indonesian rrupiah traded above Rp 17,700 against the US dollar by midday on Tuesday, 26 May 2026. Google data showed it weakened to 17,792 per USD at 12:00, while Bloomberg recorded it at 17,793 per USD, a 50-point depreciation.

Rupiah continues to struggle against dollar strength, with PT Traze Andalan Futures director Ibrahim Asssuabi forecasting further weakness tomorrow due to high external pressures during the national holiday. ‘Bank Indonesia cannot intervene in domestic markets, bonds, or government bonds, only internationally. This will likely cause the rupiah to weaken further,’ he said on Tuesday.

Asssuabi cited Middle East volatility and rising global oil prices as key factors behindtoday’s sharp depreciation, predicting a new low of 18,000 per USD this week.

Previously, Bank Indonesia Governor Perry Warjiyo expressed confidence that the rupiah would strengthen in the second half of 2026 following its sustained weakness. ‘Our experience, I don’t want to be arrogant, I lived through crises from 1997-1998 onwards. In 2008, during the global crisis, taper tantrum, and even COVID, currency pressures typically ease aroundJuly-August,’ he said last week.

Warjiyo stated the rupiah is currently undervalued against its fundamentals, based on the state budget (APBN) target of an average rate of 16,500 per USD with a ceiling of 16,800. He expects to return it to this level, attributing the current weakness to seasonal foreign exchange demand during April, May, andJune for Hajj pilgrims, dividend payments, and debt repayments. ‘ByJuly or August, the rupiah should improve,’ he added.