Rupiah Weakens Against 10 Asian Currencies, Not Just the US Dollar
Jakarta, CNBC Indonesia – The rupiah’s performance this year has been dismal. Not only has it faced pressure against the US dollar, reaching record lows, but it has also weakened against multiple Asian regional currencies.
According to Refinitiv data, since the start of the year until Tuesday’s close (26 May 2026), the rupiah has depreciated against at least 10 Asian currencies. The most significant decline was against the Malaysian ringgit, falling 9.02%. The current exchange rate stands at Rp4,466 per MYR, up from Rp4,097 at the start of the year – a new all-time low for the rupiah against the ringgit.
This depreciation against the ringgit is not entirely unexpected, as the Malaysian currency has been relatively strong in the region, bolstered by solid domestic economic prospects, foreign investment inflows, and positive sentiment towards manufacturing and technology sectors. Increased foreign investment demand for ringgit has strengthened it, while the rupiah continues to face domestic and external pressures.
The rupiah also weakened 7.38% against the Singapore dollar, now at Rp13,912.81/SGD, nearing the psychological threshold of Rp14,000/SGD. It started the year at Rp12,957.64/SGD, meaning it has lost nearly Rp1,000 in value per SGD within five months.
Other currencies exerting pressure include Cambodia’s riel, Vietnam’s dong, and Taiwan’s dollar, with rupiah depreciations of 6.52%, 6.39%, and 6.34% respectively. Against Laos’ kip, it fell 5.24% despite Laos’ smaller economy.
This indicates the rupiah’s weakness cannot be solely attributed to a strong US dollar, as it has underperformed against various Asian currencies, including smaller economies.
The rupiah also depreciated 4.9% against the Japanese yen, now at Rp111.87/JPY (from Rp106.53 at the start of the year), and 3.13% against Thailand’s baht at Rp545.71/THB (up from Rp526.26 at the start of the year). It weakened 2.21% against South Korea’s won and 2.03% against the Philippines’ peso.
Analysis shows the rupiah’s pressure intensified from April to May, with several Asian currencies rising against it, particularly the ringgit and Singapore dollar.
The depreciation against multiple Asian currencies suggests the rupiah’s weakness stems not only from external factors. While global influences like dollar strength, geopolitical uncertainty, oil price surges, and high Fed rate expectations have contributed, domestic issues such as foreign capital outflows, widening fiscal deficits, and policy uncertainty have exacerbated the decline.
Currency values reflect market confidence in a nation’s economy, including growth prospects, foreign investment flows, trade balances, political stability, government policies, and fiscal management. Rising domestic risks, coupled with capital flight and unclear economic policies, have made the rupiah more vulnerable than regional peers. Global pressures are a trigger, but domestic factors have deepened the depreciation.