Rupiah Weakens, US Dollar Exchange Rate Rises to Rp17,825

The rupiah exchange rate ended trading in the red against the United States (US) dollar on Monday (22/6/2026). According to Refinitiv data, the Garuda currency closed down 0.28% at Rp17,825/US, extendingitsdepreciationfromtheprevioussessiononFriday(19/6/2026), whenithadweakened0.42. Throughout the day, the rupiah moved in negative territory from the start, opening slightly lower by 0.03% at Rp17,780/US$ before pressure intensified towards the close. Meanwhile, the US Dollar Index (DXY), which measures the greenback against six major world currencies, was up 0.07% at 100.924 as of 15.00 WIB. The rupiah’s movement at the start of the week was still influenced by US dollar dynamics in global markets. The dollar strengthened amid rising uncertainty over a temporary peace deal between the US and Iran. Uncertainty grew after US President Donald Trump again threatened to resume war in the Middle East, while Tehran announced it had closed the Strait of Hormuz. Despite the heightened tensions, peace talks between the US and Iran continued for a second day in Switzerland. The negotiations are based on a memorandum of understanding reached last week to extend the April ceasefire for at least another 60 days. This uncertainty kept market appetite for the US dollar as a safe-haven asset high, limiting room for other currencies, including the rupiah, to strengthen. Shipping data showed the number of vessels passing through the Strait of Hormuz dropped sharply on Sunday after Tehran declared the strategic waterway closed. This also pushed global oil prices higher, with Brent crude rising 1.30% to US$81.62 per barrel. Domestically, market participants are also monitoring Bank Indonesia’s (BI) move to further tighten rules on purchasing foreign currency cash without underlying documents. BI officially lowered the threshold for such purchases from US$25,000 per person per month to US$10,000 per person per month, effective 1 July 2026. BI Governor Perry Warjiyo stated that the policy is part of strengthening prudential principles in the Money Market and Foreign Exchange Market (PUVA) and is aimed at supporting the effectiveness of monetary policy, including rupiah exchange rate stabilisation.