The US dollar continues to strengthen against the Indonesian rupiah. The American currency has even come close to breaking through the Rp18,000 per US dollar level.

Based on Investing data on Thursday (May 28, 2026), the US dollar briefly traded at Rp17,949. During the day, the currency moved within a range of Rp17,772 to Rp17,995.

Meanwhile, according to Google Finance data, the US dollar was also recorded at Rp17,904 at 04:00 UTC. However, the dollar later moved to Rp17,850, strengthening by around 0.37%.

Commodity and currency observer Ibrahim Assuaibi stated that the rupiah’s weakness was driven by a combination of external and domestic factors that encouraged investors to shift funds into safe haven assets such as the US dollar.

“Pressure on the rupiah currently comes from both external and internal factors occurring simultaneously,” Ibrahim explained in his statement.

From the external side, markets are paying close attention to rising geopolitical tensions in the Middle East following renewed conflict between the United States and Iran. The situation has increased concerns over potential disruptions to global energy distribution, particularly along the Strait of Hormuz oil trade route.

In addition, market expectations that the US Federal Reserve (The Fed) will maintain high interest rates for a longer period have become a negative sentiment for emerging market currencies. Higher energy prices are also seen as potentially driving global inflation higher, thereby limiting The Fed’s room to ease monetary policy.

“This condition has caused foreign capital to flow out of emerging markets, including Indonesia,” he said.

Domestically, the rupiah’s depreciation has also been influenced by rising demand for US dollars to finance oil imports, dividend payments, and maturing debt obligations. Ibrahim added that market participants are still closely monitoring Indonesia’s fiscal condition and the effectiveness of several government programs that could affect investor confidence in the country’s economic stability.

According to Ibrahim, the simultaneous external and internal pressures have significantly narrowed Bank Indonesia’s room to stabilize the rupiah, even though the central bank continues to intervene in the foreign exchange market.

“Bank Indonesia has intervened as much as possible, but market pressure remains quite strong,” he concluded.