Rupiah Weakens 0.22%, US Dollar Closes Higher at Rp17,875

The rupiah weakened against the United States (US) dollar in trading on Tuesday, snapping a three-day winning streak. The Garuda currency closed down 0.22% at Rp17,875 per US dollar, according to Refinitiv data. The rupiah was in the red zone throughout the day, opening 0.08% lower at Rp17,850 per US dollar and trading in a range of Rp17,850 to Rp17,908. Meanwhile, the US dollar index (DXY), which measures the greenback against six major world currencies, strengthened 0.15% to 101.257 as of 15.00 Western Indonesia Time. The rupiah’s depreciation occurred amid global dollar dynamics ahead of the release of US labour data. Market focus is now on the US employment report for June, which will be released on Thursday. Based on the CME FedWatch Tool, market participants estimate a 31.50% probability of a 25 basis point interest rate hike at the Federal Reserve meeting on 28-29 July, while the chance of rates being held steady stands at 68.50%. Domestically, the government, together with the House of Representatives, Bank Indonesia, and the National Economic Council, has held a coordination meeting to maintain economic growth momentum while mitigating the impact of global uncertainty. Deputy Finance Minister Juda Agung confirmed that the state budget condition remains well managed, with the deficit recorded at 0.7% of gross domestic product as of May 2026. Fiscal stability remains a key focus for the market amid external pressures on the exchange rate and the need to maintain investor confidence.