Geopolitical Uncertainty Continues, Rupiah Weakens to 17,800

RRI.CO.ID, Jakarta - China’s central bank (PBoC) has decided to keep its lending rate at 3%. This decision indicates that China continues to maintain a tight monetary policy. Over the next week, several important economic data releases from the United States will strongly influence financial and commodity markets. The U.S. will release inflation data, which is expected to rise. This has raised expectations that the U.S. central bank may continue its tight monetary policy.

Earlier this week, global financial markets were pushed by renewed geopolitical tensions. However, most Asian stock markets traded higher. Indonesia’s stock market (IHSG) also opened stronger at around 6,217, although trading remained volatile between gains and losses.

Tension in the Strait of Hormuz remains a major concern. Reports indicate that the agreement between Iran and the United States has not fully fulfilled the commitments that were previously made. The U.S. continues to issue warnings, while Iran has repeatedly allowed and then restricted access to the Strait of Hormuz.

The ongoing Middle East tensions could continue to exert pressure on global financial markets. Crude oil prices remain one of the key indicators of the situation. Currently, crude oil prices are trading between 75 and 79 U.S. dollars per barrel.

Meanwhile, the Indonesian Rupiah weakened to around 17,800 per U.S. dollar on Monday, 22 June 2026. As global central banks maintain their interest rates, monetary policies are likely to remain tight. Combined with ongoing geopolitical uncertainty, these factors continue to challenge investors.

Meanwhile, global gold prices are trading around 4,187 U.S. dollars per troy ounce, or approximately 2.4 million rupiah per gram. Gold prices remain under pressure amid inflation concerns, especially given high global oil prices.

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