Rupiah fluctuates amid mixed reports from the Middle East
Jakarta (ANTARA) – Doo Financial analyst Lukman Leong forecast that the rupiah would fluctuate amid mixed reports about geopolitical developments in the Middle East.
The rupiah weakened by five points, or 0.03 per cent, to Rp18,140 per US dollar at the opening of trading on Tuesday, compared with the previous close of Rp18,135 per dollar.
“The rupiah is expected to fluctuate amid mixed reports from the Middle East, ranging from the possibility of a US attack on Iran in the coming days to diplomatic efforts to achieve peace in the region,” he told ANTARA in Jakarta on Tuesday.
According to Anadolu, a four-party meeting involving delegations from Türkiye, Saudi Arabia, Pakistan and Iran began in Tehran on Monday (26 October). Talks focused on regional security, Israel’s activities in the region, and developments in Palestine and Lebanon.
Iranian President Pezeshkian and Foreign Minister Abbas Araghchi attended the meeting. Türkiye was represented by National Intelligence Organisation director Ibrahim Kalin, Saudi Arabia by Defence Minister Prince Khalid bin Salman, and Pakistan by Army Chief Asim Munir.
Separately, Xinhua reported that the Pentagon was preparing to launch a potentially large-scale new military operation against Iran “within 96 hours of receiving” an order from US President Donald Trump. According to the report, “sufficient” forces have now been deployed in the Middle East to carry out a potential attack.
Some US officials believe Trump’s order could come at any time before the end of the year, most likely after the US midterm elections.
The scope of the new US military operation is expected to go beyond a mere “mowing the lawn” effort or maintaining the status quo through attacks on radar systems, launchers and other Iranian assets that could be quickly restored.
Turning to domestic sentiment, Leong said foreign fund outflows from the domestic stock market were also continuing to weigh on the rupiah.
On the basis of these factors, the rupiah is forecast to trade between Rp18,100 and Rp18,200 per US dollar.