Rupiah Weakens on Increased Demand for US Dollar

Jakarta (ANTARA) - The rupiah exchange rate at Thursday’s close weakened by 114 points, or 0.63 per cent, to Rp18,128 per US dollar, from Rp18,014 per US dollar previously.

Research and Development Indonesia Commodity & Derivatives Exchange (ICDX) analyst Muhammad Amru Syifa said the rupiah’s weakening was triggered by increased demand for the US dollar.

“The rupiah’s decline was influenced by rising demand for the US dollar as a safe haven asset after the conflict between the United States and Iran heated up again,” he told ANTARA in Jakarta on Thursday.

In addition, he continued, the rise in West Texas Intermediate (WTI) crude oil prices to around US$74 per barrel heightened concerns over global inflation and strengthened expectations that the Federal Reserve will maintain interest rates at relatively high levels.

Market players are also awaiting the release of US Initial Jobless Claims data, which could provide new clues about the direction of The Fed’s monetary policy.

From the domestic side, Indonesia’s economic fundamentals are said to remain sufficiently sound, helping to limit pressure on the rupiah. This is reflected in Indonesia’s foreign reserves position, which rose to US$145.6 billion at the end of June 2026, up from US$144.9 billion the previous month.

“The increase strengthens Bank Indonesia’s capacity to safeguard exchange rate stability amid growing global uncertainty,” Amru said.

Moreover, inflation that remains under control and Bank Indonesia’s commitment to maintaining exchange rate stability through a mix of monetary policies are considered supporting factors.

“Nevertheless, in the short term, the rupiah’s movement is expected to remain more influenced by global sentiment developments than domestic factors,” he said.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also weakened today to Rp18,090 per US dollar, from Rp18,005 per US dollar previously.