Rupiah closes at Rp16,925 per US dollar on Friday amid Middle East tensions

Jakarta (ANTARA) - The rupiah traded closed in Jakarta on Friday at Rp16,925 per US dollar, down 20 points or 0.12 percent from the previous close of Rp16,905 per US dollar.

Market watcher Ibrahim Assuaibi said the rupiah’s weakness remained influenced by the conflict in the Western/Middle East region that has not yet shown signs of abating, leaving global financial market makers on guard.

‘The fighting between the US-Israel and Iran has intensified over the past week, with missile strikes and retaliatory attacks spreading across the region and raising concerns about disruptions to global energy supplies,’ he said in a written statement in Jakarta on Friday.

Oil prices were said to have risen sharply as the conflict threatens key energy infrastructure and sea routes in the Gulf. The surge in crude prices has raised fears of a new wave of global inflation.

This situation is seen as complicating the outlook for global central banks, including the US Federal Reserve. He explained that higher oil prices tend to trigger inflation and may make policymakers more cautious about cutting rates soon.

‘Investors are now turning their attention to the US February non-farm payrolls data release later today, which could provide new signals on labour market strength and the direction of monetary policy. A figure stronger than expected could reinforce the view that the Federal Reserve has room to delay rate cuts,’ Ibrahim said.

The Jakarta Interbank Spot Dollar Rate (JISDOR) in Bank Indonesia also moved higher to Rp16,919 per US dollar from the previous Rp16,886 per US dollar.