Rupiah Heads for Third Monthly Loss as Key Data Looms

2026-05-29 06:13 By Farida Husna 1 min. read

The rupiah hovered near IDR 17,870 per U.S.

dollar on Friday after briefly touching a record low of 17,970 in the prior session.

Sentiment steadied as the U.S.

dollar index eased on reports of a tentative U.S.–Iran peace deal, tempering fears of inflation and further Fed hikes.

Still, caution lingered ahead of May inflation and April trade data due next week.

Risks are building as energy costs rise, while March exports shrank and imports stayed weak, underscoring external fragility.

Concerns also persist over new rules requiring exporters to retain proceeds locally, with traders doubtful the measure will meaningfully lift foreign reserves since funds remain under exporter control.

The rupiah is on track for a third straight monthly drop, down nearly 3% in May and 6.6% year-to-date, ranking among Asia’s weakest alongside the Indian rupee and Philippine peso.

Fiscal strains and capital outflows continue to weigh despite Bank Indonesia’s mid-May rate hikes and other stabilisation efforts.



News Stream
Rupiah Heads for Third Monthly Loss as Key Data Looms
The rupiah hovered near IDR 17,870 per U.S. dollar on Friday after briefly touching a record low of 17,970 in the prior session. Sentiment steadied as the U.S. dollar index eased on reports of a tentative U.S.–Iran peace deal, tempering fears of inflation and further Fed hikes. Still, caution lingered ahead of May inflation and April trade data due next week. Risks are building as energy costs rise, while March exports shrank and imports stayed weak, underscoring external fragility. Concerns also persist over new rules requiring exporters to retain proceeds locally, with traders doubtful the measure will meaningfully lift foreign reserves since funds remain under exporter control. The rupiah is on track for a third straight monthly drop, down nearly 3% in May and 6.6% year-to-date, ranking among Asia’s weakest alongside the Indian rupee and Philippine peso. Fiscal strains and capital outflows continue to weigh despite Bank Indonesia’s mid-May rate hikes and other stabilisation efforts.
2026-05-29
Indonesia Rupiah Hits New Low Amid Thin Trading
The Indonesian rupiah weakened to a fresh record low of near IDR 17,900 per U.S. dollar in thin holiday trading on Thursday, extending losses for a sixth straight session. The decline came as the U.S. dollar index rose toward a seven-week high after reports of new U.S. strikes on an Iranian military site dimmed prospects for a peace deal, stoking inflation fears and global rate concerns. Caution also emerged ahead of next week’s release of May inflation and April trade data. While April inflation stayed contained, rising energy costs threaten renewed price pressures. Trade momentum remains fragile, with March exports falling and imports sluggish. The rupiah is set for a ninth straight weekly decline, down about 0.4% this week so far and 6.4% year-to-date, ranking among Asia’s weakest alongside the Indian rupee and Philippine peso. Persistent fiscal strains and lingering capital outflows continue to weigh, despite Bank Indonesia’s larger-than-expected rate hike in mid-May.
2026-05-28
Rupiah Nears Record Low as Markets Await Key Data
The Indonesian rupiah slipped toward IDR 17,800 per US dollar in late May, approaching a fresh record low, pressured by broad strength in the US dollar index amid growing inflation risks linked to Middle East uncertainty. Locally, worries over Indonesia’s external balance deepened after Q1 current account deficit hit the largest in over six years. Markets also braced for key data due next week, including May inflation and April trade. While April inflation remained mild, risks of renewed price pressures have built amid escalating geopolitical tensions. Meantime, March’s trade surplus was driven by weaker imports rather than export strength, underscoring fragility. Traders assessed new rules requiring export proceeds to stay in the domestic financial system, a measure seen as offering some support for the rupiah. The currency has fallen about 6.4% ytd, among Asia’s worst performers alongside the Indian rupee and Philippine peso.
2026-05-26