Rupiah Under Pressure as US Economic Data Boosts Dollar Strength
Executive Summary
Key insights and market outlook
The Indonesian rupiah weakened by 0.11% to Rp16,798 per USD on Thursday, January 8, 2026, amid strong US economic data that boosted the dollar. The Jakarta Interbank Spot Dollar Rate (JISDOR) also depreciated by 0.09% to Rp16,801 per USD. Analysts attribute the rupiah's decline to better-than-expected US economic indicators, including a significant jump in the ISM Services PMI index.
Deep Dive Analysis
Rupiah Faces Pressure as US Economic Data Strengthens Dollar
Currency Movement Analysis
The Indonesian rupiah experienced a decline against the US dollar on Thursday, January 8, 2026, closing at Rp16,798 per USD, representing a 0.11% depreciation from the previous day's close of Rp16,780 per USD. This movement marked the rupiah's weakest level since April 2025. The Jakarta Interbank Spot Dollar Rate (JISDOR) similarly weakened, falling 0.09% to Rp16,801 per USD.
Factors Influencing Currency Performance
Currency analyst Ibrahim Assuaibi attributed the rupiah's depreciation to the release of several US economic indicators that exceeded market expectations, signaling a recovery in economic activity. Notably, the ISM Services PMI index showed a significant increase, contributing to the strengthened US dollar and subsequently pressuring the rupiah.
Market Implications
The rupiah's recent performance highlights its vulnerability to external factors, particularly US economic data releases. Investors and market participants are closely monitoring these developments as they have significant implications for currency movements and broader financial market stability in Indonesia.
Source References
Story Info
Topics Covered
Key Events
Rupiah Depreciation
US Economic Data Release
Currency Market Movement