Rupiah Weakens as Global Oil Prices Continue to Rise

Jakarta (ANTARA) - The rupiah exchange rate weakened by 1 point or 0.01 percent to Rp16,981 per US dollar on Monday morning from the previous close at Rp16,980 per US dollar.

Currency analyst from Doo Financial Futures, Lukman Leong, stated that the rupiah’s weakening was influenced by the continuously rising global crude oil prices.

“The rupiah is expected to weaken against the US dollar amid deteriorating sentiment and still rising global crude oil prices,” he told ANTARA in Jakarta on Monday.

Notably, the price of West Texas Intermediate (WTI) oil has reached $103 per barrel.

This increase is due to disruptions in the Strait of Hormuz, a route for shipping 20 million barrels of oil per day, since early March 2026, which has driven supply shortages and increased global oil prices.

Sentiment towards the rupiah is also influenced by the potential for the Federal Reserve (The Fed) to maintain interest rates at 75 percent, and the likelihood of raising rates this year.

“The US dollar index itself is observed to continue rising, with investors now expecting The Fed to hold interest rates and a chance of raising them this year rather than cutting them. However, approaching the psychological level of Rp17,000, it is expected that BI (Bank Indonesia) will intervene,” said Lukman.

“High oil prices are certain to trigger inflation, so central banks will respond with interest rate hikes,” he explained.

Based on these factors, the rupiah is expected to range between Rp16,950-Rp17,050 per US dollar.