Rupiah Drops as Markets Face Global Geopolitical Uncertainty

RRI.CO.ID, Jakarta - The Indonesian Rupiah has weakened again, hitting 17,900 per US Dollar on Wednesday, 3 June 2026. The national stock market and gold prices also declined following recent domestic economic data.

Market players are now focusing on geopolitical tensions in the Middle East. The US reported that Iran deployed mines in the Strait of Hormuz, causing significant uncertainty.

Crude oil prices are rising due to a lack of progress in negotiations. WTI oil is trading at $94.58 per barrel, while Brent is around $96.7 per barrel.

The Indonesian Stock Market (IHSG) opened higher at 6,207 this morning. However, the index has since weakened and is currently trading near the 6,070 support.

The Rupiah’s decline is partly due to a smaller trade surplus in the latest data. Domestic economic performance currently appears less strong to many investors.

Global gold prices also fell to approximately $4,478 per troy ounce. This translates to about 2.59 million Rupiah per gram in the local market.

Improving US labor data sparked speculation about the Federal Reserve's policy stance. Investors now believe the Fed will maintain elevated interest rates, which is negative for gold.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)