Rupiah Weakens in Early September: What's Behind the Decline?

Rupiah Weakens in Early September: What’s Behind the Decline?

Reporter

September 1, 2026 | 09:45 pm

TEMPO.CO, Jakarta - The rupiah exchange rate on Tuesday weakened by 22 points, or 0.12%, at Rp17,744 per US dollar, from the previous close of Rp17,722.

Woori Bank analyst Rully Nova stated that the weakening of the rupiah was influenced by increasing oil prices to US$91 per barrel, which is in line with the escalation of the U.S.-Iran conflict.

“The rupiah weakened in today’s trading, influenced by rising global oil prices in line with the escalating conflict between the U.S. and Iran,” he said on Tuesday, as quoted by ANTARA.

On Sunday, August 30, 2026, U.S. forces struck two Iranian missile launchers on Larak Island, marking the first attack on Iranian territory since late July. The operation, which came after a month-long hiatus in direct military engagement, targeted systems suspected of being prepared to launch mine-laden rockets into the Strait of Hormuz.

In response, Sputnik revealed that Iranian armed forces reportedly launched attacks on U.S. military positions in Jordan. Other sentiment comes from rising inflation expectations and rising U.S. government bond yields.

“U.S. inflation expectations are 0.39 percent monthly and 3.6 percent annually. The 10-year U.S. government bond yield rose 5.8 basis points to 4.77 percent, and the 20-year bond yield rose 6.7 bps to 5.27 percent,” Rully said.

Meanwhile, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) strengthened today to Rp17,727 per US dollar from Rp17,746 previously.

Read: Why Is the Rupiah Expected to Weaken in September?

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