Rupiah set to strengthen as Trump delays attack on Iran

Jakarta (ANTARA) - The rupiah exchange rate on Tuesday morning weakened by 17 points, or 0.10 percent, to Rp17,685 per US dollar, compared with the previous close at Rp17,668 per US dollar. Doo Financial Futures currency analyst Lukman Leong said the rupiah is poised to strengthen as US President Donald Trump delays attack on Iran. “The rupiah is poised to strengthen against the US dollar as market concerns ease after Trump delays the attack on Iran,” he told ANTARA in Jakarta on Tuesday. Citing Anadolu, Trump decided to delay the attack on Iran because several countries in the region told him they believed an agreement to end the war completely was near. Trump said he was urged by the leaders of Saudi Arabia, Qatar, the United Arab Emirates (UAE), and other unnamed countries to delay the attack because they believed an almost-complete ceasefire agreement with Iran had been reached. “Nevertheless, the strength may be limited given weak domestic sentiment and investors’ anticipation ahead of the Bank Indonesia Board of Governors Meeting (RDG BI), which is expected to raise interest rates,” Leong said. He added that one reason BI might decide to raise rates is the rise in yields on US Treasuries. “The rise is expected to make the rupiah more attractive again,” he said. Based on these factors, the rupiah is forecast to trade in a range of Rp17,600–Rp17,700 per US dollar.