Rupiah Strengthens Following Trump's Statement That War is Nearly Complete

Jakarta — The Indonesian rupiah exchange rate closed trading in Jakarta on Tuesday, strengthening by 86 points or 0.51 percent to Rp16,863 per US dollar, up from the previous close of Rp16,949 per US dollar.

Muhammad Amru Syifa, Research and Development analyst at Indonesia Commodity & Derivatives Exchange (ICDX), stated that the rupiah’s appreciation was driven by US President Donald Trump’s statement that the conflict with Iran was approaching resolution.

“The statement helped alleviate some investor concerns about potential prolonged conflict that had previously been feared to disrupt global energy supplies and dampen prospects for global economic growth,” he told ANTARA in Jakarta on Tuesday.

According to Kyodo news, Trump stated that the war with Iran, which continues to the present day, is estimated to “end soon”, though he denied it would end this week.

Mojtaba Khamenei is known for his close ties to the Islamic Revolutionary Guards Corps (IRGC). His rise to power has raised concerns in many countries that the conflict, now in its second week, could further destabilise the Middle East and directly impact the global economy.

Whilst insisting that the US has achieved “unprecedented” military successes, Trump expressed disappointment with the selection of Iran’s new supreme leader. “We think this will just cause the same problems for that country,” he said.

“A correction in the US dollar index provided room for various currencies, including the rupiah, to move more stably and tend to strengthen,” said Amru.