Rupiah Hits Rp17,000, Triggered by Escalation of US-Israel War with Iran

The market remains vigilant regarding the potential escalation of the Iran war after the Yemen-based Houthi group attacked Israel last weekend. Jakarta (ANTARA) - The rupiah exchange rate closed weaker on Monday’s trading by 22 points or 0.13 percent to Rp17,002 per US dollar from the previous close at Rp16,980 per US dollar. Currency and commodity analyst Ibrahim Assuaibi said this weakening was triggered by the escalation of the Iran war following the Houthi group opening a new front in the conflict. “The market remains cautious about the potential escalation of the Iran war after the Yemen-based Houthi group attacked Israel last weekend. The Houthi group could open a new front in the war, given their capability to launch attacks in the Red Sea,” he stated in a written release in Jakarta on Monday. Citing Sputnik, Yemen’s Ansar Allah Movement, or Houthi, attacked Israel with missiles for the second time in a day and will continue attacks until Israel halts its assaults on Iran and Lebanon. As reported by Anadolu, Houthi leader Abdul-Malik al-Houthi has stated that his group will support Iran against “US-Israel aggression” and is prepared for any developments in the ongoing confrontation. The Houthi group views the illegal US and Zionist Israeli attacks on Iran as a “war against Islam and Muslims” and warns that the conflict targets the entire region. Other sentiment stems from Iran’s readiness to face a bloody invasion by the US following Washington’s deployment of thousands of troops to the Middle East. “President Donald Trump stated that negotiations with Iran are progressing well and an agreement may be reached soon. However, he did not mention a clear deadline, while also warning of further attacks on Tehran,” he said. Looking at US economic data, the University of Michigan revealed that American households are becoming pessimistic about the economic situation. “Consumer sentiment in March fell from 55.5 to 53.3, below the estimate of 54. Expectations for inflation over the next 12 months jumped from 3.4 percent in February to 3.8 percent, while for five years it remained unchanged at 3.2 percent,” Ibrahim disclosed. Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) today also moved weaker to Rp16,993 per US dollar from the previous Rp16,957 per US dollar.