Rupiah strengthens amid potential US-Iran peace talks

Jakarta (ANTARA) - The rupiah exchange rate closed higher today, strengthening by 18 points or 0.10% to Rp17,211 per US dollar from the previous close at Rp17,229 per US dollar. Currency and commodity economic observer Ibrahim Assuaibi assessed that the rupiah’s strengthening was influenced by the potential for peace talks between Iran and the US. “Iran’s Foreign Minister Abbas Araqchi is expected to arrive in Islamabad on Friday (1/5) evening to discuss a proposal to resume peace talks with the US after talks failed earlier this week,” he said in a written statement in Jakarta on Monday. US President Donald Trump stated that Iran has submitted a new proposal to reopen the Strait of Hormuz and end the war. “Navigation through the Strait of Hormuz, which before the war carried about one-fifth of global oil production, remains effectively blocked. The seizure of two cargo ships by Iran highlights Washington’s difficulties in controlling the route. Only five ships, including an Iranian oil product tanker, have passed through the Strait of Hormuz in the last 24 hours,” Ibrahim revealed. Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) today also moved higher to Rp17,277 per US dollar from the previous Rp17,278 per US dollar.