Rupiah opens stronger amid US-Iran negotiations

The rupiah opened stronger on Monday (25 May 2026), gaining 21 pips or 0.12% to Rp17,696 against the US dollar, compared to the previous close of Rp17,717 per dollar. Doo Financial Futures currency analyst Lukman Leong attributed the rupiah’s strength to hopes of a US-Iran peace deal.

“The rupiah is expected to strengthen against the US dollar due to Middle East peace prospects and falling global oil prices in response to US President Donald Trump’s statement that negotiations with Iran are progressing constructively,” he said in Jakarta on Monday.

Quoting Anadolu, Trump confirmed that an agreement to end the war with Iran has been “largely negotiated” and will be finalised soon. He added that he had discussed the draft agreement through “excellent” communication with regional leaders.

Washington and Tehran continue to negotiate proposed terms and counterproposals via Pakistan’s mediation, covering the reopening of the Strait of Hormuz, addressing concerns over Iran’s nuclear programme, and lifting sanctions.

Domestic sentiment improved since Friday (22 May), with equity markets closing positively. “However, the rupiah remains under pressure following a large current account deficit,” Lukman noted.

Based on these factors, the rupiah is forecast to trade between Rp17,600 and Rp17,750 per dollar.