Rupiah Strengthens to 17,980 per USD after BI‑Rate Hike

RRI.CO.ID, Jakarta - The Indonesian rupiah opened below the IDR 18,000 level against the US dollar on Wednesday, June 10, 2026. Bloomberg reported the rupiah rose 0.43 percent, or 78 points, to IDR 17,980 per USD at the opening.

At Tuesday’s close, the rupiah had strengthened 0.71 percent to IDR 18,058 per USD, following Bank Indonesia’s (BI) decision to raise its benchmark interest rate (BI‑Rate) by 25 basis points to 5.5 percent.

Analysts expect the rupiah’s appreciation to continue, though gains remain limited. “The rupiah still has potential to strengthen against the US dollar following BI’s rate hike,” said Lukman Leong, a currency market analyst at Doo Financial Futures, in Jakarta on Wednesday.

He cautioned that external factors could cap the rupiah’s rise. “Escalating conflicts in the Middle East and higher global crude oil prices will limit the rupiah’s appreciation,” he said.

Lukman forecast the rupiah to trade between IDR 17,900 and 18,100 per USD, while the US Dollar Index (DXY) is projected to move between 99.90 and 100.02.

Analysts noted BI has deployed all available measures to stabilize the currency, which has depreciated 9 percent since the start of the year.

“BI’s off‑cycle rate hike underscores the urgency to stabilize the rupiah,” said Jessica Tasijawa, a money market analyst at Mirae Asset Sekuritas. She added that, historically, BI has only taken such steps during periods of significant exchange-rate pressure.

Jessica explained that off‑cycle policies are typically followed by increases in yields on 10‑year Government Securities (SBN) of 100 to 320 basis points over the calendar year.

The rupiah is expected to strengthen by 1–3 percent over the next month, with foreign capital inflows projected at IDR 10–40 trillion (USD 556.88 million–2.22 billion) over the next three months.

“This measure aims to reinforce BI’s credibility and independence,” Jessica said, adding that it demonstrates a strong commitment to restoring confidence in rupiah‑denominated assets.

She also noted that there is room for an additional 25–50 basis-point hike if pressure on the rupiah persists. (Gusti Panji)