TEMPO.CO, Jakarta - The Indonesian rupiah has once again weakened to one of its lowest levels at Rp18,015 per US dollar this morning, Thursday, June 4, 2026. This signifies rupiah sliding to a new psychological threshold of Rp 18,000 per US dollar.
Currency analyst from Doo Financial Futures, Lukman Leong, believes that this depreciation reflects strong external pressures amidst increasing global uncertainty, coupled with domestic sentiment that is still considered less conducive.
"The rupiah is expected to weaken against the strengthening US dollar amidst escalating geopolitical tensions in the Middle East," Lukman told Antara in Jakarta on Thursday, June 4, 2026.
Furthermore, several US economic data releases that were better than market expectations have also strengthened the US dollar.
The US labor market data and the Institute for Supply Management (ISM) non-manufacturing purchasing managers' index showing stronger performance than expected have increased optimism about the US economy.
The combination of these factors has led to increased demand for the US dollar and has put pressure on emerging market currencies, including the rupiah.
Meanwhile, domestically, the market sentiment is deemed insufficient to support the movement of the rupiah.
Nevertheless, Lukman predicts that the depreciation of the rupiah is likely to be mitigated by Bank Indonesia's stabilization measures.
With the exchange rate approaching a new psychological threshold, the central bank is expected to increase its intervention intensity in the financial markets to maintain exchange rate stability.
"The poor domestic sentiment, nearing a new psychological threshold, is likely to prompt Bank Indonesia to intervene aggressively," he added.
Lukman estimates that the rupiah will remain fluctuating in the range of Rp17,900 to Rp18,050 per US dollar.
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