Rupiah weakens as Israel violates ceasefire
Jakarta (ANTARA) - The rupiah exchange rate weakened by 18 points or 0.11 percent to Rp17,030 per US dollar on Thursday morning from the previous close at Rp17,012 per US dollar.
Analyst at Bank Woori Saudara, Rully Nova, stated that the rupiah’s weakening was influenced by Israel’s violation of the ceasefire agreement by attacking Lebanon.
“The rupiah is expected to weaken in the range of Rp17,020 - Rp17,080 today, influenced by renewed external pressures following Iran’s claims of a violation of the ceasefire agreement related to Israel’s attack on Lebanon, which has triggered a rise in oil prices,” he told ANTARA in Jakarta on Thursday.
Quoting Anadolu, the US had previously accepted a 10-point proposal as a workable basis for negotiations aimed at ending the war.
One of the points included was the cessation of hostilities on all fronts, including in Lebanon.
However, Israel launched massive airstrikes in the Dahiyeh area south of Beirut, Lebanon. The Israeli military previously stated that it had attacked more than 100 locations within 10 minutes in Beirut, the Beqaa Valley, and southern Lebanon, resulting in a total of 254 deaths.
Furthermore, as reported by Sputnik, US Vice President JD Vance stated on Wednesday (8/4) that the cessation of hostilities in Lebanon was not part of the ceasefire agreement between the United States and Iran, describing the issue as a “misunderstanding”.
US President Donald Trump had previously said that stopping the conflict in Lebanon was not included in the agreement due to the involvement of the Hezbollah group. Trump assessed the situation in that country as part of a “separate clash.”
Regarding domestic sentiment, the release of foreign exchange reserves, which declined by $3.7 billion to $148.2 billion at the end of March 2026, and a trade surplus below market participants’ expectations did not affect the rupiah’s movement.
“The market consensus for the trade surplus was $1.5 billion, but the realisation was $1.2 billion,” he revealed.