Rupiah Weakens This Morning as US Dollar Rises to Rp17,650
The rupiah came under renewed pressure against the US dollar at the opening of trade this morning.
The Garuda currency began trading on Tuesday (15/9/2026) at Rp17,650/US$, weakening 0.06%, according to Refinitiv data.
The position extended pressure from the previous session. The rupiah closed Monday’s trading (14/9/2026) 0.31% lower at Rp17,640/US$.
Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was up 0.20% at 99.588 as of 09.00 WIB.
Today’s rupiah movement was also coloured by domestic developments after Suahasil Nazara was officially inaugurated as Finance Minister, replacing Purbaya Yudhi Sadewa, on Monday (14/9/2026).
Following his inauguration, Suahasil said his main focus would be to safeguard the health and credibility of the State Budget (APBN) so that it remains able to fund the government’s priority programmes.
According to Suahasil, the APBN must also be able to drive growth whilst maintaining the stability of the national economy.
“The President’s specific instruction is to safeguard state finances. That means maintaining their health and maintaining the credibility of those state finances,” Suahasil said.
“So the APBN, as part of state finances, must be able to carry out the government’s priority programmes, which is why the budget must be healthy. Beyond being healthy, it must also be credible. The APBN must be trusted,” he continued.
Amid the news, the strengthening of the US dollar index in global markets continued to limit room for the rupiah to gain.
The US dollar rose against several major currencies in Monday’s trading. The ongoing conflict in the Middle East pushed oil prices higher and led investors to seek safe-haven assets once again.
Brent crude oil surged around 5% to reach US$109.80 per barrel. This came after an attack by the Houthi group on Saudi Arabia heightened concerns over energy supplies. Risks mounted after Saudi Arabia shut a main pipeline used to bypass the Strait of Hormuz, whilst routes to the Red Sea also faced threats.
Diplomatic efforts to end the US-Israel war with Iran also encountered obstacles after a meeting between Iran and a number of Gulf states was postponed. Attacks on ships in the region further heightened worries over the smooth delivery of oil.
In addition, markets are bracing for The Federal Reserve’s interest rate decision at the FOMC meeting on 15-16 September this week. The odds of a rate hike increased after high energy prices once again amplified US inflationary pressure.
Based on the CME FedWatch tool, the market is pricing in roughly a 90% chance that The Fed will raise interest rates at this week’s meeting. That probability has risen sharply from around 60% last week.
Expectations of a rate hike have also bolstered the dollar, as dollar-denominated assets become more attractive. This is putting additional pressure on the rupiah.