August 31, 2026 | 06:12 pm
TEMPO.CO, Jakarta - The rupiah exchange rate against the US dollar weakened by 29 points or 0.16 percent to Rp 17,722 per US dollar during Monday's trading session, compared to its previous close of Rp17,693 per US dollar.
Bank Indonesia's Jakarta Interbank Spot Dollar Rate (JISDOR) similarly dropped today to Rp17,746 per US dollar from the previous Rp17,703 per US dollar.
Currency analyst and Director of Laba Forexindo Berjangka Ibrahim Assuabi noted that the rupiah's depreciation was driven by mounting hostilities between the United States and Iran.
"US forces attacked two missile launchers on Larak Island, Iran, located in the Strait of Hormuz, on Sunday, August 30, 2026. This is the first known attack by America against the Gulf nation since late July. In response, Iran reportedly attacked two US airbases in Jordan, as reported by Iranian media on Monday, citing a statement from the Iranian Revolutionary Guard," Ibrahim said in a written statement in Jakarta on Monday, August 31, 2026, as quoted by Antara.
Negotiations to resolve the conflict remain stalled while mediators attempt to reopen the Strait of Hormuz, a shipping lane that accounted for one-fifth of global oil supplies before hostilities erupted in late February 2026. Market sentiment was further influenced by remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium.
Warsh stressed that the central bank's main focus remains price stability, spurring market speculation over a potential interest rate hike at the Fed's upcoming September meeting given ongoing efforts to bring inflation back to its 2 percent target.
"The Fed Chair also stated that it is difficult to describe current financial conditions as restrictive, while noting that credit and loan markets show only minor signs of monetary policy tightening," Ibrahim said.
Meanwhile, Bank Mandiri's Office of Chief Economist expects the rupiah exchange rate to experience volatility throughout the trading week from August 31 to September 4, 2026.
For this week's trading, the state lender projected the rupiah to move within a range of Rp17,675 to Rp17,720 per US dollar. "We project the rupiah to move in the range of 17,675 to 17,720," Bank Mandiri Chief Economist Andry Asmoro said in a written statement on Monday, August 31, 2026.
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