Indonesian Rupiah remains stronger on strong domestic GDP
- Indonesia's Q2 GDP grew 5.29% year-on-year, beating market forecasts of 5.1%.
- US Dollar weakened as a potential Oman-Iran deal to reopen the Strait of Hormuz reduced safe-haven demand.
- Rabobank’s Jane Foley noted safe-haven USD demand softened after President Trump backed away from further military action.
USD/IDR depreciates after registering minor gains in the previous day, trading around 17,970 during the Asian hours on Wednesday. The currency pair is under downward pressure as a combination of strong Indonesian economic performance and softening US Dollar (USD) demand weighs on the pair.
The Indonesian Rupiah (IDR) gained traction following better-than-expected domestic economic growth. Indonesia’s gross domestic product (GDP) expanded 5.29% year-on-year in Q2 2026, comfortably beating market expectations of 5.1%, though moderating slightly from Q1's 5.61% expansion (which marked the strongest annual growth since Q3 2022). On a quarterly basis, the economy rebounded sharply with a 3.73% quarter-on-quarter increase, recovering from a 0.77% contraction in Q1 and topping forecasts of 3.5%. This represents the nation's strongest quarterly expansion rate since Q2 2025.
Additionally, the US Dollar (USD) lost ground as safe-haven demand receded due to growing diplomatic momentum surrounding global energy transit routes. According to a report from Axios, the United States, Iran, and Oman are nearing an interim agreement to reopen the Strait of Hormuz, with US officials aiming for an official announcement on Wednesday. The proposed framework establishes a 60-day temporary arrangement between Oman and Iran across the vital maritime chokepoint, which handles nearly 20% of the world's energy supply, with options for further extension.
Iran de-escalation undercuts safe-haven bid for the Dollar
Rabobank’s Jane Foley adds that the geopolitical backdrop has also undermined the greenback’s defensive appeal, noting that safe-haven demand has been tempered after President Trump’s weekend move to step back from further military action. In her words, “safe-haven USD buying will likely have been knocked back by the weekend announcement from Trump that he had paused further attacks on Iran on the hope of a diplomatic solution.”
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | -0.01% | -0.05% | 0.09% | 0.00% | 0.43% | -0.07% | |
| EUR | 0.00% | 0.00% | -0.02% | 0.10% | 0.00% | 0.43% | -0.07% | |
| GBP | 0.00% | -0.00% | -0.02% | 0.12% | 0.00% | 0.44% | -0.07% | |
| JPY | 0.05% | 0.02% | 0.02% | 0.14% | 0.06% | 0.47% | -0.03% | |
| CAD | -0.09% | -0.10% | -0.12% | -0.14% | -0.09% | 0.36% | -0.17% | |
| AUD | -0.01% | -0.00% | -0.00% | -0.06% | 0.09% | 0.43% | -0.08% | |
| NZD | -0.43% | -0.43% | -0.44% | -0.47% | -0.36% | -0.43% | -0.48% | |
| CHF | 0.07% | 0.07% | 0.07% | 0.03% | 0.17% | 0.08% | 0.48% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
