Rupiah Faces Largest Weekly Drop Since May Amid Rising US Yields and Strong Dollar

Indonesia's rupiah hits 17,935 per dollar as US yields rise and dollar strengthens. Weekly loss nears May levels.

September 25, 2026 One Min Read

POLICY WIRE — Jakarta, Indonesia — The Indonesian rupiah is on track for its largest weekly decline since mid-May, falling to 17,935 per US dollar amid rising US Treasury yields and a stronger dollar. The currency faces continued pressure despite the central bank’s decision to keep its benchmark interest rate unchanged at 5.75%.

The weakening rupiah reflects broader regional trends, with Asian currencies experiencing widespread losses this week. Bank Indonesia has maintained its policy rate for a third consecutive month, signaling caution against aggressive rate hikes or heavy-handed interventions to support the local currency.

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Analysts note that foreign investors are increasingly demanding higher returns or reducing exposure to rupiah assets due to weaker confidence. The US dollar surged this week, with the rupiah ending Friday slightly higher at 17,730 per dollar but still recording a 0.82% weekly decline. The Chinese yuan was the only Asian currency to gain ground this week.

Reporting by Policy-Wire (PW)

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