US Dollar Pressure Continues, Rupiah Today Potentially Weakening

Illustration. (Photo: Dok. Antara)

JAKARTA - The rupiah exchange rate on Thursday, January 8, 2026 is expected to weaken against the US dollar.

Citing data from Bloomberg, Wednesday, January 7, 2025, the spot rupiah exchange rate closed down 0.13 percent to Rp16,780 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of the Bank Indonesia (BI) closed down 0.14 percent to the price level of Rp16,785 per US dollar.

Doo Financial Futures analyst Lukman Leong assessed that pressure on the rupiah still came from the strengthening of the US dollar which was driven by the release of stronger than expected ISM services sector data.

"The rupiah is expected to still be pressured by the US dollar which has strengthened again by the stronger than expected ISM service data," he told VOI, Thursday, January 8.

However, he estimated that the weakening of the rupiah would be limited because market participants were waiting for the release of Indonesia's foreign exchange reserves (cadev) data.

"However, the weakness will be limited, investors are waiting for today's Indonesian cadev data," he explained.

Lukman estimates that the movement of the rupiah on Thursday, January 8, 2026 will be in the range of Rp16,700-Rp16,850 per US dollar.

Meanwhile, money market observer Ibrahim Assuaibi, revealed that the US economic data showed a sluggish condition of the manufacturing sector.

Meanwhile, the US ISM Manufacturing PMI index in December 2025 was recorded at 47.9, lower than the projection of 48.3 and down from 48.2 in November.

"This indicates a further decline in manufacturing activity. The figure marks the tenth consecutive contraction month and underlines the continued weakness in this sector," he said.

Ibrahim also highlighted the statement of the President of the Minneapolis Federal Reserve, Neel Kashkari, who remained hawkish where inflation was still too high and said that current monetary policy was getting closer to a neutral position.

"It also describes the labor market as being in a low-recruitment, low-firing environment, showing limited turnover rather than a real decline," he said.

Ibrahim estimates that the rupiah will move fluctuatio but within the price range of Rp16,750 - Rp16,780 per US dollar.