Breaking News! Rupiah Hits Rp17,500/US$, Weakest Level in History

Jakarta, CNBC Indonesia - The rupiah exchange rate opened this morning’s trading at a historic weakening level, reaching Rp17,500/US.AccordingtoRefinitivdata, theGarudacurrencyweakenedtoRp17, 500/US at 9:15 WIB. At the opening, the rupiah opened in the red zone with a 0.43% weakening to Rp17,480/US$. The DXY at the opening was also observed strengthening by 0.21% to 98.115. This was triggered by US President Donald Trump stating that the ceasefire with Iran is now “on the brink” after Tehran rejected Washington’s proposal to end the war. Iran demands an end to the conflict on all fronts, including in Lebanon, compensation for war damage, lifting of the US naval blockade, guarantees of no further attacks, and restoration of its oil exports. Tehran also asserts its control over the Strait of Hormuz, a route that typically carries about 20% of the world’s oil and gas supply. Trump called Iran’s response “completely unacceptable” and said the ceasefire in effect since 7 April is now very fragile. Iran insists its demands are legitimate, while Parliament Speaker Mohammad Baqer Qalibaf warned that Iran’s military is ready to respond to any aggression. This impasse has pushed Brent crude oil prices up more than 3% to above US$104 per barrel. Ship traffic through the Strait of Hormuz has shrunk drastically, forcing producers to cut exports and straining global supply. At the same time, the US has imposed new sanctions on parties helping Iran export oil to China. Domestically, two out of three Americans believe Trump has not clearly explained the war’s objectives. Trump is scheduled to meet President Xi Jinping in Beijing on Wednesday, with the Iran issue expected to be a key agenda item.