Rupiah weakens to Rp17,984 per US dollar amid Middle East tensions
Analysts cite U.S. strikes on Iran and disruption in the Strait of Hormuz as pressure on the rupiah, despite higher reserves.
The rupiah weakened on Wednesday morning by 4 points, or 0.02 percent, to Rp17,984 per US dollar, from the previous close of Rp17,980. The pressure came from escalating geopolitical tensions in the Middle East, which were seen making investors more cautious on risk assets. Doo Financial Futures analyst Lukman Leong said a fresh U.S. strike on Iran, which CENTCOM described as a response to attacks on three merchant ships in the Strait of Hormuz, was a negative sentiment for the rupiah. An IRIB report also said the Qatar vessel Al-Rekayyat was briefly attacked while trying to pass through the Oman route with support from the U.S. Navy. Separately, Bank Indonesia said foreign exchange reserves at the end of June 2026 rose to US$145.6 billion from US$144.9 billion in May. Lukman expected the rupiah to trade in the Rp17,950-Rp18,050 range per US dollar.