Jakarta. Rupiah strengthened at Monday's opening, extending last week's gains as easing geopolitical risks and lower energy prices supported emerging-market currencies despite the US dollar remaining firm on expectations of higher Federal Reserve interest rates.

Bloomberg data at 9:05 a.m. Jakarta time showed the rupiah appreciating 54 points, or 0.30%, to Rp 17,868 per US dollar in the spot market. The US Dollar Index stood at 101.361.

The rupiah had also closed stronger on Friday, gaining 21 points to Rp 17,922 per US dollar.

Rupiah advanced even as the US dollar entered the second half of 2026 on solid footing, buoyed by strong expectations of further Federal Reserve rate hikes and continued investor demand for US assets, a combination that has pressured many other currencies.

The greenback has emerged as the best-performing major currency in the first half of 2026, gaining around 3%, marking a sharp turnaround from the previous year when it slumped more than 10%, its steepest first-half decline since the early 1970s, following the impact of US tariff policies.

Although prospects of a ceasefire between the US and Iran have eased energy prices and inflation concerns, investors continue to expect further policy moves from the Federal Reserve as the resilient US economy, supported by the AI boom, reinforces demand for the dollar alongside lingering geopolitical tensions.

Elsewhere in the foreign exchange market, the Singapore dollar traded at Rp 13,788, the Japanese yen at Rp 110.32, the Australian dollar at Rp 12,299, and the euro at Rp 20,316.