Rupiah Weakens Slightly, US Dollar Rises to Rp17,780

The Garuda currency started this week’s trading by weakening against the United States (US) dollar. Referring to Refinitiv data, at the opening of trading on Monday (22/6/2026), the rupiah depreciated to Rp17,780/US, aslightweakeningof0.03 in its last trading session on Friday last week. Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was observed to have strengthened slightly by 0.05% to 100.813 as of 09.00 WIB. The rupiah’s movement in early week trading is expected to continue to be influenced by the dynamics of the US dollar in global markets. The US dollar moved strongly on Monday amid increasing uncertainty over the temporary peace agreement between the United States (US) and Iran. Uncertainty arose after US President Donald Trump again threatened to continue the war in the Middle East, while Tehran announced it had closed the Strait of Hormuz. Despite rising tensions, peace talks between the US and Iran continued into the second day in Switzerland. The negotiations are based on a memorandum of understanding reached last week to extend the April ceasefire for at least 60 days. Data showed the number of ships passing through the Strait of Hormuz fell sharply on Sunday after Tehran declared it had closed the strategic waterway. This condition also pushed up world oil prices, with Brent rising 1.30% to US$81.62 per barrel. This uncertainty has kept market appetite for the US dollar as a safe haven asset high. This condition ultimately limits the room for appreciation of other countries’ currencies, including the rupiah. Domestically, market participants are also observing Bank Indonesia’s (BI) move to further tighten the rules on purchasing foreign currency in cash without supporting documents or underlying transactions. BI has officially lowered the threshold for purchasing foreign currency cash without underlying from the previous US$25,000 per person per month to US$10,000 per person per month. This new rule will take effect on 1 July 2026. BI Governor Perry Warjiyo stated that the policy is part of strengthening prudential principles in the Money Market and Foreign Exchange Market (PUVA). This measure is also directed at supporting the effectiveness of monetary policy, including rupiah exchange rate stabilisation.