Rupiah weakens to fresh low of Rp17,865 against US dollar

Jakarta, CNBC Indonesia - The rupiah closed in the red against the US dollar on Friday, 29 May 2026, marking the end of the week’s trading. According to Refinitiv data, the rupiah settled at a fresh all-time low of Rp17,865 per US dollar, depreciating 0.51% on the day. This extended the rupiah’s correction trend for the fifth consecutive trading day. Throughout the session, the rupiah traded between Rp17,800 and Rp17,885 per US dollar, bringing it closer to the next psychological threshold of Rp17,900 per US dollar. Meanwhile, the US dollar index (DXY) rose slightly by 0.05% to 99.066 as of 3pm WIB. The rupiah’s weakness occurred amid sustained pressure on the currency. Trimegah Sekuritas Indonesia’s Chief Economist, Fakhrul Fulvian, said the rupiah is in an overshooting phase, where its depreciation exceeds what long-term fundamentals would justify. Fakhrul noted this is not solely due to poor economic fundamentals but also how markets interpret global pressures, domestic policy direction, and the clarity of economic adjustments. “Financial markets do not just read today’s data. They assess policy direction, the credibility of responses, and the country’s ability to maintain stability amid rapid global changes,” Fakhrul told CNBC Indonesia on Friday, 29 May 2026. Fakhrul stated the rupiah is currently the main adjustment point for pressures that should be distributed across other economic sectors. He explained that normally, when global energy prices rise, pressures manifest across multiple areas including inflation, fiscal policy, domestic prices, and exchange rates. However, when domestic adjustments are made cautiously to preserve social stability and purchasing power, the pressure burden shifts more to the rupiah. Externally, the US dollar’s movement in global markets remains a focus. The dollar traded cautiously on Friday as safe-haven demand eased following renewed optimism about potential US-Iran agreements. Nevertheless, the rupiah remained under pressure and closed at a fresh low.