US Dollar Climbs to Rp17,850 This Morning
Jakarta, CNBC Indonesia - The rupiah exchange rate opened weaker against the US dollar in trading on Tuesday (23/6/2026). This occurred amid a continuously strengthening US dollar index.
According to Refinitiv data, the Garuda currency began trading in the red, depreciating to Rp17,850/US, aweakeningof0.14.
Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was observed to have edged up 0.02% to 101.040 as of 09.00 WIB. This extended the previous session’s gain, when the DXY rose 0.17%.
The rupiah’s movement today is expected to remain influenced by external sentiment, particularly the dynamics of the US dollar in global markets. The dollar strengthened amid lingering market concerns over the potential for higher-for-longer interest rates in the United States. This situation arose after the US central bank (The Federal Reserve) maintained its benchmark interest rate in the range of 3.50%-3.75%.
Furthermore, the Fed’s latest interest rate projections, or dot plot, also indicated the likelihood of high interest rates persisting for longer. Some Fed officials even still foresee the potential for a rate hike at the next meeting. However, the dollar’s strengthening was held back by positive developments in negotiations between the United States and Iran.
In Switzerland, high-level US-Iran talks were said to have concluded quite positively despite some disruptions. Previously, the US and Iran had signed a memorandum of understanding containing 14 points, including a commitment to implement a 60-day ceasefire period to discuss a resolution to the conflict. As part of the initial agreement, the US agreed to lift its naval blockade against Iran, while Iran reopened the Strait of Hormuz. The easing of supply concerns caused oil prices to fall, thereby reducing inflationary pressures and capping further dollar gains.
On the domestic front, Finance Minister Purbaya Yudhi Sadewa confirmed that the issuance of Panda Bonds would help strengthen the rupiah exchange rate going forward. This is because the issuance scheme will utilise Local Currency Transaction (LCT), eliminating the need for conversion to US dollars.
‘I am also thinking that perhaps later our Panda Bond issuance can just use LCT, where they only pay in yuan, the central banks there and here arrange it, the point is I receive rupiah, so I am not affected by the fluctuations or pressure from the dollar,’ Purbaya said during a working meeting with Committee IV of the Regional Representative Council (DPD RI) in Jakarta on Monday (22/6/2026).
According to Purbaya, Panda Bonds are strategic as they are part of efforts to diversify government debt securities. The ultimate goal is to strengthen rupiah exchange rate stability and reduce dependence on the US dollar. ‘Don’t just be dollar-based, but also yuan-based, as that country is equally large, the second largest in the world, and we have a bilateral swap agreement with China, local currency transaction, according to Bank Indonesia with them there. So in that way, the pressure on the rupiah will weaken significantly,’ Purbaya explained.