August 10, 2026 | 11:33 am
TEMPO.CO, Jakarta - At the close of trading on Monday, August 10, 2026, the rupiah exchange rate against the US dollar strengthened by 87 points, or 0.49 percent, to Rp17,810 per US dollar, up from the previous close of Rp17,897 per US dollar.
Muhammad Amru Syifa, from the Research and Development division of the Indonesia Commodity & Derivatives Exchange (ICDX), stated that the rupiah's appreciation was underpinned by Indonesia's relatively strong foreign exchange reserves.
"The rupiah continues to receive support from the relatively strong state of foreign exchange reserves," he told Antara in Jakarta on Monday.
Indonesia's foreign exchange reserves stood at US$145.3 billion at the end of July 2026, a slight decline from the US$145.6 billion recorded the previous month.
The high level of reserves is considered to provide Bank Indonesia (BI) with the capacity to maintain exchange rate stability through interventions in the foreign exchange market.
However, Amru added, the minor decline also indicates that pressure on the rupiah remains a factor requiring attention.
Global Factors and US Economic Data
On the global front, the rupiah benefited from positive sentiment as the US dollar index stood at 99.6, its lowest level since early June, after weaker-than-expected US labor market data raised expectations for monetary policy easing.
In the short term, the market is expected to closely monitor US inflation data, a key indicator for shaping expectations regarding Federal Reserve (The Fed) policy at its September 2026 meeting.
"Inflation coming in lower than expected could put downward pressure on the US dollar and allow room for the rupiah to strengthen. Conversely, higher inflation could revive expectations for tighter monetary policy and drive a strengthening of the US dollar," Amru explained.
Short-Term Currency Outlook
In the short term, the rupiah is projected to have limited potential for further appreciation, trading within the range of Rp17,750 to Rp17,900 per US dollar. If US inflation comes in lower than market forecasts, Amru said, expectations for a loosening of Federal Reserve policy could rise, thereby pressuring the US dollar and creating room for the rupiah to strengthen.
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