JAKARTA – The Indonesian rupiah has appreciated 1.84% against the US dollar since the beginning of May 2025, the highest among Asian currencies.

According to data compiled by IDNFinancials.com, the rupiah stood at IDR 16,295/USD as of 9:15 AM local time today. The currency has gained 305 points since the start of the month.

The Singapore dollar also appreciated by 1.39% during the same period, reaching 1.2884/USD. The Chinese yuan followed with a 1.19% gain to 7.1852/USD.

Meanwhile, the Japanese yen weakened by 0.63% against the US dollar to 143.97/USD.

On the other hand, the US Dollar Index (DXY) had climbed more than 2% in mid-May but has since slipped back to its end-of-April level at 99.47.

Market strategist at DBS Bank, Wei Liang, stated that the strengthening of Asian currencies has been driven by capital flows from US dollar-denominated assets into Asian markets.

“Meanwhile, investors continue to monitor US trade and fiscal policies that offer tax relief,” said Wei Liang, as quoted by Reuters.

Separately, a foreign exchange strategist at BNP Paribas attributed the rise in Asian currencies to a de-escalation in US-China trade tensions.

As previously reported by IDNFinancials.com, analysts predict the rupiah will continue to strengthen toward IDR 16,000/USD. This momentum is supported by Bank Indonesia’s recent decision to cut its benchmark interest rate to 5.50%. (KR/ZH)