Rupiah movement accompanied by increasing US-Iran conflict escalation

Jakarta (ANTARA) - The rupiah exchange rate against the US dollar at the opening of trading on Thursday moved stronger by 50 points or 0.28 per cent to Rp17,713 per US dollar, compared to the previous close at the level of Rp17,763 per US dollar.

Permata Bank Chief Economist Josua Pardede stated that the movement of the rupiah is overshadowed by the escalation of geopolitical tensions in the Middle East following retaliatory attacks between the US and Iran in the region.

“The increasing tension has triggered rising investor scepticism regarding the progress of peace negotiations,” he told ANTARA in Jakarta on Thursday.

Quoting Sputnik, the Iranian military attacked United States bases located in Kuwait, Bahrain, Jordan, and Iraq to retaliate against a lethal US attack at a wedding event in the Islamic Republic.

Anadolu revealed that the US Central Command (CENTCOM) announced since Tuesday (1/9/2026) night that it had launched attacks against IRGC targets in Iran.

Following the announcement, Iranian media reported explosions on Qeshm Island as well as in Bandar Abbas, Sirik, Chabahar, and Konarak.

“Higher uncertainty in the Middle East is also driving up oil prices,” said Josua.

Based on these factors, the rupiah is predicted to range between Rp17,700 and Rp17,825 per US dollar.