{
    "success": true,
    "data": {
        "id": 1772668,
        "msgid": "us-dollar-could-weaken-if-two-middle-east-conditions-materialise-1780057548",
        "date": "2026-05-29 16:34:00",
        "title": "US Dollar Could Weaken if Two Middle East Conditions Materialise",
        "author": "Wisnu Arto Subari",
        "source": "MEDIA_INDONESIA",
        "tags": "",
        "topic": "Finance",
        "summary": "Global markets await US President Trump's decision on a potential US-Iran ceasefire extension, with analysts predicting a weaker dollar if the Strait of Hormuz reopens. Oil prices have dropped as hopes for conflict resolution rise, while the rupiah strengthens and European nations may reduce US assets due to Greenland trade threats. The outcome will influence global inflation and central bank monetary policies.",
        "content": "<p>Global financial markets are currently awaiting a crucial decision\nfrom US President Donald Trump regarding a potential extension of the\nceasefire between the US and Iran. This move is predicted to be a key\ncatalyst for major currency movements, particularly the US dollar and\neuro. MUFG Bank analyst Derek Halpenny stated in his latest report that\nthe US dollar could weaken if Trump approves the agreement followed by\nthe reopening of the Strait of Hormuz. However, he noted that\nnormalising traffic in the strait might take time if Iran needs to clear\nmines first. On the other hand, ING\u2019s Francesco Pesole projects the euro\ncould strengthen over 1% against the dollar if the Strait of Hormuz\nreopens. However, for the euro to hold above $1.1800, a more favourable\nshort-term interest rate differential between the US and Eurozone will\nbe required. Axios reports that US and Iranian negotiators have agreed\non a 60-day ceasefire Memorandum of Understanding (MoU). However,\nconfirmation of the deal still awaits final approval from the White\nHouse. Treasury Secretary Scott Bessent stated that while the framework\nexists, approval depends on meeting key conditions set by the US. Vice\nPresident JD Vance also told the BBC that both sides are still working\nto resolve critical points. Uncertainty has led Asian currencies,\nincluding potential impacts on the rupiah exchange rate, to consolidate\nas geopolitical risks moderate but have not fully shifted to risk-on\nsentiment. Markets remain on hold, as reopening the vital trade route in\nthe Strait of Hormuz will significantly determine global energy\ninflation and future central bank monetary policies. (WSJ\/I-2) Trump\u2019s\ntrade threats towards Europe over Greenland have increased the\nlikelihood of European governments reducing their US asset holdings. The\nrupiah suddenly strengthened to Rp8,170.65 per US dollar on Google\nsearch engine. The rupiah\u2019s exchange rate against the euro also showed\nsimilar results. Several factors influence the rupiah\u2019s exchange rate,\nsuch as national economic conditions where Indonesia\u2019s economic growth,\ninflation, and interest rates affect it. Brent and WTI crude oil prices\nhave sharply declined amid hopes of an end to the US-Iran conflict.\nAsian and European stock markets have responded positively. Saudi\nanalyst Mubarak al-Ati said Saudi Arabia no longer trusts US protection\nand is leading the formation of a new Arab-Islamic bloc. The Iranian\nRevolutionary Guard Corps (IRGC) Navy fired warning shots at four ships\nnear the Strait of Hormuz. Meanwhile, the US threatened to impose\nsanctions on Oman. The Bloomberg Dollar Index fell 0.2% after reports of\na 60-day MoU between the US and Iran regarding ceasefire and access to\nthe Strait of Hormuz. US and Iranian negotiators reached a 60-day MoU to\nextend the ceasefire and discuss nuclear programmes, awaiting Donald\nTrump\u2019s approval.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/us-dollar-could-weaken-if-two-middle-east-conditions-materialise-1780057548",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}