Rupiah Closes at Rp17,002 per Dollar on Thursday, Influenced by Middle East Geopolitics

The movement of the rupiah continues to be influenced by the strengthening US dollar, oil price movements, and geopolitical uncertainties in the Middle East region. Jakarta (ANTARA) - The rupiah exchange rate closed weaker on Thursday afternoon trading, down 19 points or 0.11 percent to Rp17,002 per US dollar from the previous close at Rp16,983 per US dollar. Research and Development Indonesia Commodity & Derivatives Exchange (ICDX) Muhammad Amru Syifa stated that the rupiah’s weakening was influenced by geopolitical uncertainties in the Middle East. “The rupiah’s movement is still influenced by the strengthening US dollar, oil price movements, and geopolitical uncertainties in the Middle East region,” he told ANTARA in Jakarta on Thursday. Citing Anadolu, US President Donald Trump stated that his side would leave Iran in the next two to three weeks. According to official US figures, 13 US military members have been killed since the war began. The conflict between the US-Zionist Israel and Iran is also driving up energy prices and affecting shipments through the Strait of Hormuz, a crucial global route for oil shipping with most commodity shipments passing through that strait. “President Donald Trump’s statement adds further pressure on the market. Uncertainty regarding the end of the conflict and the ongoing potential for escalation make market participants tend to be cautious. This condition drives the strengthening of the US dollar and the rise in oil prices, which ultimately puts pressure on emerging market currencies, including the rupiah,” Amru explained. Market attention is also focused on the release of US economic data, particularly employment data, as well as the direction of Federal Reserve (The Fed) interest rate policy. On the domestic side, Indonesia’s inflation decline to an annual level of 3.48 percent is seen as reflecting easing price pressures and serving as a factor supporting stability. “Bank Indonesia’s steps through instruments such as SVBI and SUVBI also help maintain foreign exchange liquidity, although their impact in the short term is still less dominant compared to external factors,” he said. The Jakarta Interbank Spot Dollar Rate (JISDOR) from Bank Indonesia today also moved weaker to Rp17,015 per US dollar from the previous Rp17,002 per US dollar.