The Indonesian rupiah weakened to a near-record low of around IDR 18,170 per U.S. dollar on Tuesday, extending its losing streak to a sixth consecutive session. The drop came even as the U.S. dollar eased from a nine-week peak after Iran and Israel agreed to halt attacks, calming geopolitical tensions. Domestic strains kept pressure on the local currency, with May’s foreign reserves falling further, bond yields climbing, and import costs rising, underscoring external imbalances. Concerns also deepened after reports that Washington may phase in an 18% tariff on Indonesian goods from July 24, threatening export competitiveness and capital flows. Traders largely shrugged off a sharp rise in tax revenue in the first five months of 2026, which officials touted as evidence of a stronger economy. The rupiah has now lost nearly 9% year-to-date, cementing its position as Asia’s weakest currency despite Bank Indonesia’s surprise 50bp rate hike to 5.25% in May, its first increase since 2022.