Rupiah Expected to Weaken on Monday Amid Failed US-Iran Negotiations

Jakarta (ANTARA) - Currency analyst at Doo Financial Futures, Lukman Leong, predicts that the rupiah exchange rate on Monday will weaken following the failure of peace negotiations between the US and Iran. “The rupiah is expected to weaken against the US dollar due to the failure of the second round of US-Iran peace negotiations, which is pushing up crude oil prices and strengthening the US dollar,” he told ANTARA in Jakarta on Monday. Meanwhile, the rupiah exchange rate in Monday morning trading strengthened by 18 points or 0.10 percent to Rp17,211 per US dollar from the previous close at Rp17,229 per US dollar. Quoting Anadolu, Iranian President Masoud Pezeshkian emphasised that his side will not negotiate under pressure, threats, or blockades. A meeting point and a conducive environment are considered the main requirements for effective dialogue. According to Pezeshkian, previous negotiation experiences have deepened public distrust in Iran because the dialogue took place alongside sanctions, pressure, and blockades. He stressed the important prerequisites for resolving disputes, namely stopping hostile attitudes and guarantees that it will not happen again. US President’s Special Envoy Steve Witkoff and Jared Kushner were previously scheduled to depart on Saturday (25/4), but several reports indicate that the Iranian delegation had already left Pakistan first. Meanwhile, domestic sentiment remains generally weak in relation to the budget deficit condition and Bank Indonesia (BI), which has not yet given signals to raise interest rates. “Nevertheless, as stated on Thursday (23/4), BI will increase the intensity of interventions to support the rupiah,” Lukman said. Based on these factors, the rupiah exchange rate is predicted to be in the range of Rp17,100-Rp17,200 per US dollar.