Rupiah Weakens to Rp 17,796 per US Dollar Amid Rising Industry Layoff Risks

JAKARTA - The rupiah closed under pressure in the spot market on Tuesday, 26 May 2026, depreciating 53 points or 0.29% to Rp 17,796 per US dollar.

Currency and commodities analyst Ibrahim Assuaibi noted that geopolitical tensions between the US and Iran have reignited global market concerns. This pressure emerged as the domestic economy remains unstable due to the rupiah’s weakness against the US dollar.

The US military claimed the attack was carried out in self-defence and stated that the ceasefire with Iran remains in effect. However, Tehran’s response to the latest military action remains unclear. This situation is seen as potentially complicating peace negotiations between the US and Iran.

The latest military action also dampened positive sentiment from previous reports that the US and Iran had agreed on a framework to end the war and reopen the Strait of Hormuz. Global oil prices briefly fell sharply on Monday following the peace prospects report, but unclear on-the-ground conditions limited the decline in crude oil prices.

US President Donald Trump also hinted at progress in negotiations with Iran on Monday.