The rupiah exchange rate weakened again against the US dollar in\ntrading on Tuesday (18\/8). The rupiah closed at Rp17,862 per US dollar,\ndown 64 points or 0.36% compared to the previous closing position of\nRp17,798 per US dollar.<\/p>\n
Bank Woori Saudara analyst Rully Nova assessed that the pressure on\nthe rupiah was inseparable from the rise in world oil prices. The\nmovement of commodity prices was influenced by market concerns about the\npossibility of continued conflict between the US and Iran.<\/p>\n
\u201cThe rupiah weakened in today\u2019s trading, influenced by the global\nrise in oil prices due to concerns about the continuation of the US-Iran\nconflict,\u201d he said.<\/p>\n
The rise in oil prices occurred after US President Donald Trump\nstated he would not extend the framework agreement with Iran. This\ncondition increased market concerns about escalating tensions in the\nStrait of Hormuz region.<\/p>\n
Anadolu Agency reported that oil prices jumped more than 2% following\nTrump\u2019s statement. At 18.50 GMT, Brent crude, the international oil\nprice benchmark, was recorded up 2.4% to US$90.60 per barrel. Meanwhile,\nWest Texas Intermediate (WTI) crude, the US market benchmark,\nstrengthened 2.2% to US$84.20 per barrel.<\/p>\n
Trump previously said he was not seeking to extend the agreement\nreached with Iran in June through Pakistani mediation. The statement was\nmade as the 60-day negotiation deadline drew closer, while a\ncomprehensive agreement had not yet been reached.<\/p>\n
The situation raised new concerns about the possibility of increased\ntensions in the region. If the conflict worsens, energy shipping flows\nthrough the Strait of Hormuz could potentially be disrupted. The strait\nis a strategic route that plays an important role in world oil\ntrade.<\/p>\n
Citing Sputnik, Trump also stated that the idea of making the Strait\nof Hormuz part of US territory was a \u201cgood\u201d idea. The US President again\nclaimed that the US has \u201cfull control\u201d over the Strait of Hormuz.<\/p>\n
On the other hand, Iranian Army Commander General Amir Hatami stated\nthat the US has no right of passage through the Strait of Hormuz, the\nPersian Gulf, or the Gulf of Oman. He also assessed that the Strait of\nHormuz is an important geopolitical asset for Iran.<\/p>\n
Hatami emphasised that conditions in the strategic waterway would not\nreturn to how they were before, amid rising geopolitical tensions in the\nregion.<\/p>\n
From the domestic economic side, the rise in oil prices is also a\nconcern because it could put pressure on Indonesia\u2019s fiscal position.\nRully said oil prices above the assumption in the State Revenue and\nExpenditure Budget (APBN) could widen the deficit when economic\nfundamentals still face challenges.<\/p>\n
\u201cThe rise in oil prices above the APBN assumption (US$70 per barrel)\nwill trigger a fiscal deficit, while the fundamental economic condition\nis not yet solid,\u201d Rully revealed.<\/p>\n
In addition to external factors, the domestic financial market is\nalso awaiting the results of Bank Indonesia\u2019s Board of Governors Meeting\n(RDG) taking place on 18-19 August 2026.<\/p>\n
Market participants expect BI not to raise its benchmark interest\nrate at the meeting. However, the direction of BI policy will not only\nbe seen from the interest rate decision, but also from other policies\npursued to maintain exchange rate and economic stability.<\/p>\n
\u201cHowever, the policy mix beyond interest rates will determine the\nconsistency of BI\u2019s stability policy,\u201d he said.<\/p>\n
In line with the weakening of the rupiah in the spot market, Bank\nIndonesia\u2019s Jakarta Interbank Spot Dollar Rate (JISDOR) on Tuesday also\nfell. JISDOR was recorded at Rp17,856 per US dollar, weakening from the\nprevious position of Rp17,836 per US dollar.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-weakens-to-rp17-862-per-us-dollar-pressured-by-rising-oil-prices-1787050238", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }