Video: Strong US Dollar Dominance, What Are the Effects on the Foreign Exchange Derivatives Market?

Jakarta, CNBC Indonesia - The US dollar continues to strengthen amid market concerns over uncertainties from the Middle East war and the potential end of the low interest rate era, as well as threats of benchmark interest rate hikes by central banks due to global geopolitical and economic pressures.

At the opening of trading on Monday (4 May 2026), the rupiah weakened to Rp17,320 per US dollar. This condition is inseparable from market conditions amid global economic and geopolitical turmoil, causing investors to seek safe-haven assets like the US dollar and pressuring the rupiah’s value.

CEO of PT Indonesia Futures Clearing, Budi Susanto, revealed the market consensus predicting that the pressure on the rupiah will continue to ease in line with the downward trend of the dollar index until the end of 2026, thus expected to lead to rupiah appreciation.

Currently, the still high volatility conditions make the need for hedging or risk protection very high to safeguard assets and transactions.

For more details, watch the dialogue between Syarifah Rahma and CEO of PT Indonesia Futures Clearing, Budi Susanto, in Squawk Box, CNBC Indonesia (Monday, 4 May 2026).