Rupiah Gains Positive Sentiment from Expectations of US-Iran Ceasefire Negotiations

Jakarta (ANTARA) - Head Economist at Permata Bank, Josua Pardede, stated that the rupiah exchange rate is receiving positive sentiment from expectations of ceasefire negotiations from the US in the war against Iran. “Reports of the US intention to implement a five-day ceasefire, along with a proposal related to 15 main points for resolving the Iran war,” he said to ANTARA in Jakarta on Wednesday. Citing Anadolu, there is hope for de-escalation in the Iran war against US and Zionist Israeli aggression following reports that the US has provided Iran with a plan that could end the conflict. Anadolu reported that US President Donald Trump stated he has ordered a delay in all attacks on power generation and energy infrastructure for the next five days. Trump added that this is because dialogues with Tehran over the past two days have been “very good and productive”. However, Iran’s parliamentary speaker Mohammad Bagher Ghalibaf denied that his side is negotiating with the United States and called the news “fake” intended to manipulate 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 leader and people until the war’s objectives are achieved. According to Josua, the potential negotiations floated by Trump reflect the possibility of reduced escalation in the Middle East conflict, thereby bringing risk-on sentiment back to global financial markets. Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) today actually strengthened to Rp16,905 per US dollar from the previous Rp16,982 per US dollar. At the end of trading on the spot market this Wednesday afternoon, the rupiah exchange rate weakened to Rp16,911 per US dollar.