Rupiah Expected to Weaken Amid Scepticism Over US-Iran Peace

Jakarta (ANTARA) - The rupiah exchange rate opened higher in Jakarta trading on Thursday morning, strengthening by 22 points or 0.13 percent to Rp16,889 per US dollar from the previous close of Rp16,911 per US dollar. However, currency analyst from Doo Financial Futures, Lukman Leong, forecasts the rupiah to weaken amid scepticism over peace in the Middle East. “The rupiah is expected to weaken against the strengthening US dollar due to scepticism about peace in the Middle East. The rebound in oil prices is also burdensome,” he told ANTARA in Jakarta on Thursday. Quoting Anadolu, Iran’s parliamentary speaker Mohammad Bagher Ghalibaf denied that his side is negotiating with the United States and called the reports “fake news” aimed at manipulating oil and financial markets. Ghalibaf added that the Iranian people demand full and regret-inducing punishment for the aggressors, while all officials stand firmly in support of the country’s leadership and people until the war’s objectives are achieved. Previously, US President Donald Trump stated that he had ordered a delay in all attacks on power generation and energy infrastructure for the next five days. Trump added that this was because dialogues with Tehran over the past two days had been “very good and productive.” Currently, the price of West Texas Intermediate crude oil produced in Texas, US, has reached $91 per barrel, and Brent has risen above $100 per barrel. Amid the oil price surge, the government is reportedly preparing plans to anticipate an energy crisis. “The government has stated that if there is a deficit, it will remain below 3 percent by reducing the budget for MBG (free nutritious meals),” said Lukman.