Rupiah Weakens to Rp17,728 per US Dollar, Analysts Cite This Euphoria

As of 11:02 Western Indonesian Time on Tuesday, the rupiah weakened by 60 points or 0.34 percent to Rp17,728 per US dollar from the previous close of Rp17,668 per US dollar. Doo Financial Futures president director Ariston Tjendra said the weakness was primarily triggered by the impact of the Middle East conflict spilling over into crude oil prices and US inflation. ‘This is still the euphoria of the Middle East conflict spreading in all directions, such as higher crude oil prices and inflation,’ he said in Jakarta on Tuesday, 19 May 2026. The rise in US inflation expectations raises the yield on US government bonds. Noted, the yield on 2-year US Treasuries is 4.105 percent, 10-year 4.631 percent, and 30-year 5.159 percent. This rise marks a new high for 2026. The rising US yields, he said, bolster the US dollar against other currencies, including the rupiah. Looking at domestic sentiment, pressure from crude oil above $100 per barrel raises the cost of living for residents. In turn, crude oil imports increase the demand for US dollars domestically. ‘Furthermore, it’s dividend month; repatriation of dividends abroad increases demand for US dollars and also suppresses the rupiah,’ Ariston said.