Rupiah Weakens Today, Fails to Compete with Ringgit and Yen
Jakarta, CNBC Indonesia – The majority of Asian currencies strengthened against the US dollar in early trading this week on Monday (27/7/2026). The weakening of the US dollar index gave room for a number of regional currencies to move positively.
According to Refinitiv data as of 09:15 WIB, of the ten Asian currencies monitored, six strengthened against the US dollar, while the other four weakened.
The Thai baht posted the sharpest gain in Asia this morning, rising 0.39% to THB 33.54/US$.
The Malaysian ringgit and the Japanese yen also strengthened solidly, each rising 0.20%. The ringgit stood at MYR 4.080/US, whiletheJapaneseyenwasatJPY163.53/US.
The Singapore dollar also moved positively, strengthening 0.09% to SGD 1.289/US.TheChineseyuanrose0.06, while the Vietnamese dong gained 0.04% to VND 26,314/US$.
Unfortunately, the rupiah has not been able to follow the strengthening of the majority of Asian currencies. The Garuda currency weakened 0.14% to Rp17,960/US.ThispositionleavestherupiahstilltradingclosetothepsychologicallevelofRp18, 000/US.
The rupiah weakened amid surprising news from Bank Indonesia (BI). Perry Warjiyo resigned from his post as BI Governor on Saturday (25/7/2026).
The deepest pressure this morning was felt by the South Korean won, which weakened 0.54% to KRW 1,467.2/US.TheTaiwandollaralsofell0.11, while the Philippine peso corrected 0.06% to PHP 61.702/US$.
This morning’s Asian currency movements came amid a weakening US dollar in global markets. The US dollar fell at the start of a week packed with central bank agendas, including the Federal Open Market Committee (FOMC) meeting of the US central bank (The Federal Reserve/The Fed).
Markets are still weighing the possibility of a US interest rate hike in the near term. This is reflected in the movement of the US dollar index (DXY), which measures the strength of the greenback against six major world currencies.
The DXY was seen weakening 0.33% to 101.132. The weakening of the US dollar is one of the positive sentiments for regional currencies at the start of this week.
Even so, expectations of a rate hike by The Fed have not entirely disappeared. Fed funds futures are pricing in a 36.3% chance that The Fed will raise interest rates by 25 basis points at the two-day meeting ending Wednesday, according to the CME Group FedWatch Tool.
On the other hand, global market sentiment improved after the US temporarily halted its attack campaign against Iran over the weekend. The move brought oil prices down and boosted global investor confidence.
Oil prices fell sharply at the start of Asian trading. Brent weakened 4.7% to US$92.19 per barrel after the US military temporarily halted attacks that had been ongoing for two weeks.
A senior Iranian official told Reuters on Sunday that Iran would also halt its attacks for as long as the US did the same. This followed diplomatic pressure led by China to continue peace efforts in Pakistan.
Westpac analysts judged that market sentiment was supported by news of fresh peace talks.
“Market sentiment was supported by reports that Pakistan and Iran are exploring new peace talks with the US, and that oil exports from the Middle East continue to flow,” Westpac analysts wrote in a research note, cited by Reuters.
Westpac also noted that the US temporarily halted its attacks on Iran throughout the weekend, although tensions in the region have not yet fully subsided.