Rupiah Under Pressure as Fed Outlook and Energy Crisis Boost US Dollar Strength

rupiah under pressure as fed outlook and energy crisis boost us dollar strength koranpagaralampos.com - the indonesian rupiah extended its decline against the us dollar on friday morning, may 22, 2026, reflecting ongoing pressure from global economic uncertainty and geopolitical tensions in the middle east. investors continue to monitor developments surrounding energy supply disruptions, inflation concerns, and the strength of the united states economy, all of which are influencing currency movements worldwide. according to bloomberg data at 9:05 wib in the spot exchange market, the rupiah weakened by 16 points or 0.09 percent to rp17,683 per us dollar. despite the slight weakening of the us dollar index by 0.02 percent to 99.236, the indonesian currency remained under pressure due to external market sentiment and global risk aversion. the latest decline follows thursday’s trading session, when the rupiah closed 13 points weaker against the greenback after earlier touching a deeper decline of 30 points at rp17,667 per us dollar. market analysts believe the currency remains vulnerable as investors shift toward safer assets amid uncertainty in global financial markets. global markets were particularly affected by concerns surrounding peace negotiations between the united states and iran. reports from international financial media indicated that the us dollar climbed to a six-week high on thursday as geopolitical tensions in the middle east intensified. the prolonged conflict has raised fears of disruptions in global energy supply chains, potentially driving inflation higher across major economies. the us dollar index previously rose 0.3 percent to 99.43, signaling strong demand for the american currency. at the same time, other major currencies also weakened against the dollar. the euro fell 0.34 percent to us$1.1589, while the british pound slipped 0.21 percent to us$1.3402. meanwhile, the japanese yen weakened by 0.17 percent to 159.19 per us dollar. financial experts noted that the strengthening of the us dollar was largely fueled by expectations that the federal reserve may maintain tighter monetary policies for a longer period. persistent inflation concerns, combined with resilient us economic growth, continue to support the greenback. the situation in the middle east has further complicated global economic conditions. energy supply disruptions caused by ongoing conflict have increased concerns about rising oil prices, which could eventually impact inflation rates worldwide. countries highly dependent on imported energy are expected to face greater economic challenges if oil prices continue to surge. noah buffam, director of ficc strategy at cibc capital markets in toronto, explained that global growth prospects are becoming increasingly uncertain as the oil price shock continues. he stated that investors are becoming more cautious toward currencies that are heavily exposed to global economic growth. in addition to geopolitical concerns, recent economic data from the united states also contributed to the dollar’s strength. reports showed that the number of americans filing unemployment benefit claims declined last week, indicating that the labor market remains strong. the resilience of the us labor market gives the federal reserve more flexibility to focus on controlling inflation without immediate pressure to cut interest rates. for indonesia, the weakening rupiah may create additional challenges, particularly for import-dependent industries and businesses exposed to foreign exchange volatility. a weaker rupiah can increase import costs and place pressure on inflation, especially if global energy prices continue to rise. market participants are now closely watching upcoming economic data releases and developments in global geopolitics to determine the future direction of the rupiah and the broader financial market.

Tag

• # markets
• # economy
• # inflation
• # dollar
• # rupiah

Share

• 
• 
• 
• 
•