Rupiah Strengthens on US-Iran Peace Hopes

The rupiah opened stronger against the US dollar on Monday, 25 May 2026, rising 21 points or 0.12% to Rp17,696 per dollar, compared to the previous close of Rp17,717.

Currency analyst Lukman Leong from Doo Financial Futures stated that today’s rupiah strength was driven by market optimism over US-Iran peace prospects. Global sentiment has provided a boost to risk assets, including the rupiah.

According to Lukman, US President Donald Trump’s comments on constructive developments in negotiations with Iran have been the main factor in lowering global crude oil prices, benefiting the rupiah.

‘The rupiah is expected to strengthen against the US dollar due to Middle East peace hopes and lower global oil prices in response to Trump’s statement that talks with Iran are progressing constructively,’ Lukman said in Jakarta on Monday.

Citing Anadolu Agency, Trump confirmed that a draft agreement to resolve tensions with Iran has largely been negotiated and will soon enter finalisation stages. Intensive communications have reportedly been conducted with regional leaders.

The negotiation process mediated by Pakistan includes several crucial points, including: Domestically, market sentiment has improved since last weekend, with equity markets closing in positive territory on Friday (22/5). However, Lukman noted that the rupiah’s room for strength may still be overshadowed by recent economic data releases.

‘There is still pressure on the rupiah following data showing a significant current account deficit,’ he added.

Market participants now await concrete steps from the Washington-Tehran agreement finalisation, expected to provide long-term stability to energy commodity prices and global financial markets. (Ant/E-3)