Rupiah Closes at Rp17,287 per Dollar on Thursday Amid Rising Oil Prices
Jakarta (ANTARA) - The rupiah exchange rate closed lower in trading today, weakening by 106 points or 0.62% to Rp17,287 per US dollar from the previous close at Rp17,181 per US dollar.
Woori Saudara Bank analyst Rully Nova stated that the rupiah’s depreciation was influenced by the rise in global oil prices.
“The rupiah’s weakening in today’s trading was influenced by the increase in global oil prices due to the ongoing US-Iran war, which has led to the closure of the Strait of Hormuz,” he told ANTARA in Jakarta on Thursday.
It is worth noting that the second round of talks between the US and Iran in Pakistan to discuss peace negotiations and a ceasefire did not take place. This was because Iran did not participate in the discussions due to the United States imposing a blockade in the Strait of Hormuz.
In the end, the US decided on a unilateral ceasefire while continuing to press Iran not to impose tariffs in the Strait of Hormuz and to halt uranium enrichment, which would then be taken over and stored by the US.
As reported by Sputnik, Iranian President Masoud Pezeshkian stated that violations of commitments, the blockade in the Strait of Hormuz, and threats from the US are the main obstacles in the negotiation process.
According to Pezeshkian, Iran has always welcomed and remains open to dialogue and agreements. However, bad faith, encirclement, and threats from the US are the primary barriers to sincere negotiations.
Pezeshkian emphasised that the world is witnessing empty rhetoric full of hypocrisy and contradictions between claims and actions.
Anadolu reported that energy prices surged due to uncertainty over the fragile US-Iran ceasefire and the risk of failed peace negotiations, triggering new concerns about global supply disruptions.
Quoting Xinhua, Brent crude oil prices stood at around $102.25 per barrel at 02:00 GMT on Wednesday, while the US benchmark West Texas Intermediate (WTI) rose to about $93.47 per barrel.
Looking at domestic sentiment, sales of government bonds across all tenors have raised concerns among market participants regarding future economic policy stability and direction.
The selling pressure on government bonds is reflected in the rise in yields across nearly all tenors, both short, medium, and long.
“The 1-year tenor yield rose 9.5 basis points (bps), 2-year by 2.1 bps. Similarly, 3 and 4 years rose by 10.2 bps and 12.2 bps respectively. The 5-year tenor rose 12.2 bps, and even the benchmark 10-year tenor rose 9.1 bps to 6.73%,” Rully explained.
Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also moved lower today to Rp17,308 per US dollar from the previous Rp17,179 per US dollar.