Rupiah strengthens amid US-Iran peace hopes

JAKARTA (ANTARA) — The rupiah strengthened by 21 points or 0.12% to Rp17,696 per US dollar on Monday morning, compared to the previous close of Rp17,717 per dollar.

Doo Financial Futures currency analyst Lukman Leong said the rupiah’s gain was due to Middle East peace hopes and falling crude oil prices following US President Donald Trump’s statement that negotiations with Iran were ‘constructive’.

According to Anadolu, Trump confirmed that a deal to end the conflict with Iran was ‘largely negotiated’ and would soon be finalised. He said he had discussed the draft agreement through ‘very good’ communication with regional leaders.

Washington and Tehran continue to negotiate the proposed deal and its response via Pakistan’s mediation, concerning the Strait of Hormuz, concerns over Iran’s nuclear programme, and sanctions relief.

Domestic sentiment improved since Friday (22/5), with equity markets closing positively. However, Leong noted ongoing rupiah pressure due to a large current account deficit.

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