Rupiah Set to Mark First Weekly Rise Since March

2026-06-12 05:11 By Farida Husna 1 min. read

The Indonesian rupiah inched higher to around IDR 17,910 per U.S.

dollar on Friday, snapping two sessions of weakness as the dollar index broadly weakened after President Trump signaled that a peace deal with Iran could be signed in Europe this weekend, easing geopolitical tensions and reducing haven demand.

Local support efforts also drew attention, with Deputy House Speaker Sufmi Dasco Ahmad urging citizens to sell dollars to help stabilise the rupiah after repeated record lows.

Focus now turns to Bank Indonesia’s policy meeting next week, where analysts expect the board to maintain its tightening stance following 75bps of hikes since May.

The central bank also projected the rupiah could strengthen to IDR 16,800–17,500 next year.

Gains were capped, however, by weak April data showing annual retail sales fell for the first time in a year, underscoring the drag from higher non-subsidized fuel prices.

For the week, the rupiah firmed about 0.8% so far, its first advance in eleven weeks.



News Stream
Rupiah Set to Mark First Weekly Rise Since March
The Indonesian rupiah inched higher to around IDR 17,910 per U.S. dollar on Friday, snapping two sessions of weakness as the dollar index broadly weakened after President Trump signaled that a peace deal with Iran could be signed in Europe this weekend, easing geopolitical tensions and reducing haven demand. Local support efforts also drew attention, with Deputy House Speaker Sufmi Dasco Ahmad urging citizens to sell dollars to help stabilise the rupiah after repeated record lows. Focus now turns to Bank Indonesia’s policy meeting next week, where analysts expect the board to maintain its tightening stance following 75bps of hikes since May. The central bank also projected the rupiah could strengthen to IDR 16,800–17,500 next year. Gains were capped, however, by weak April data showing annual retail sales fell for the first time in a year, underscoring the drag from higher non-subsidized fuel prices. For the week, the rupiah firmed about 0.8% so far, its first advance in eleven weeks.
2026-06-12
Rupiah Near 18,000 Amid Dollar Strength
The Indonesian rupiah edged lower toward IDR 17,980 per U.S. dollar on Thursday after briefly strengthening below IDR 17,900 in the previous session. The local currency came under renewed pressure as the U.S. dollar index hovered near a two-month high, with investors seeking safe-haven assets following fresh U.S. strikes on Iran. Meanwhile, domestic sentiment weakened after new data showed annual retail sales fell for the first time in a year during April, underscoring the drag from higher non-subsidized fuel prices on household spending. Traders largely dismissed Bank Indonesia’s projection that the currency could strengthen to 16,800–17,500 next year, with near-term focus on inflation risks and potential policy tightening. Ahead of next week’s policy meeting, Governor Perry Warjiyo said the board is still weighing whether another rate hike is needed after a total increase of 75bps since May, but stressed that any further action will depend on incoming data and market developments.
2026-06-11
Rupiah Remains Under Strain Despite Policy Support
The Indonesian rupiah dipped to around IDR 17,950 per U.S. dollar on Wednesday, retreating after briefly firming below IDR 17,850 in the prior session. The currency came under renewed pressure as the dollar held firm and fresh hostilities in the Middle East dashed hopes for a ceasefire, prompting investors to seek safer assets. Locally, sentiment faltered after May’s consumer sentiment dropped to an eight-month low, highlighting concerns over economic conditions and household income. Support from Bank Indonesia’s surprise 25bp rate hike Tuesday quickly faded as a 32% rise in non-subsidized fuel prices took effect, intensifying inflation worries. Focus now turns to next week’s policy meeting as officials seek to support the rupiah after a string of record lows. Despite interest rate hikes totaling 75bps since May and heavy intervention that has reduced reserves by USD 12 billion this year, the currency remains weak from fiscal risks, subsidy burdens, and controversial export policies.
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