US dollar remains fairly strong as rupiah closes weaker at Rp17,690 per US$

Jakarta, CNBC Indonesia — The rupiah closed the week’s final session on Friday (22 May 2026) weaker against the US dollar. Refinitiv data show the rupiah ended at Rp17,690 per US, down0.28. During the day, the currency traded in a range of Rp17,660 to Rp17,725 per US.Thedepreciationfollowsaprevioussessioninwhichtherupiahcloseddown0.23. Meanwhile, the US dollar index (DXY), which tracks the greenback against six major currencies, was up 0.04% at 15:00 WIB to 99.293.

The rupiah’s weakness today came as Bank Indonesia released the Indonesia Balance of Payments (BOP) for Q1-2026. The current account recorded a deficit of US$4 billion, or 1.1% of GDP. The deficit widened from Q4-2025’s US$2.5 billion (0.7% of GDP). It is also higher than Q1-2025’s US$200 million (0.1% of GDP). The Q1-2026 current account deficit was the largest since Q4-2019, when the deficit stood at US$8.04 billion. Nevertheless, BI said the current account deficit remained relatively low.

“The non-oil and gas trade balance nevertheless posted a surplus, though smaller than the surplus in the previous quarter, in line with the global economy’s slower growth and disruptions to international trade supply chains,” said Ramdan Denny Prakoso, Head of BI’s Communication Department, on Friday (22 May 2026).

Externally, the movements of the US dollar also weighed on the rupiah. The dollar hovered near its six-week high on the day of trading, after signals regarding the prospects of a US–Iran peace agreement were inconclusive, prompting volatility in global financial markets.

Washington and Tehran remain at odds over Iran’s uranium stockpile and the control of the Strait of Hormuz. Yet, US Secretary of State Marco Rubio said there were some positive signals in the talks.

As long as the US dollar remains elevated, room for rupiah gains among developing-market currencies is likely to be limited.