Rupiah Weakens: What's Behind the Move?
Rupiah weakened by 16 points to Rp17,877 per US dollar from the previous close of Rp17,861.
The Indonesian rupiah fell 16 points (0.09%) against the US dollar on Wednesday, trading at Rp17,877 per dollar compared to the previous close of Rp17,861. Woori Bank analyst Rully Nova attributed the rupiah's depreciation to ongoing negotiations between the US and Iran. The outcome of these talks could impact oil prices, which in turn affects the rupiah.
Iran has proposed several conditions for reopening the Strait of Hormuz, including ending aggression across the region and returning frozen assets. However, the US and Iran have not yet reached a final agreement to resolve their conflict, and the strait's closure continues to disrupt global energy supply chains. Market participants are also eagerly awaiting the release of US inflation data tonight.
Domestically, Indonesian President Prabowo Subianto appointed Destry Damayanti as the sole candidate for Governor of Bank Indonesia (BI), signaling a slight easing of market uncertainty. The positive market response reflects market confidence in a sustainable rupiah stability program, according to Rully. The Bank Indonesia Jakarta Interbank Spot Dollar Rate (JISDOR) also decreased, falling from Rp17,824 to Rp17,876 per US dollar.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
