Rupiah Weakens as US-Iran Peace Talks Reach Deadlock

Jakarta (ANTARA) - Currency analyst Lukman Leong from Doo Financial Futures stated that the weakening of the rupiah was triggered by the stalled talks between the United States (US) and Iran. “The rupiah is expected to weaken in line with the strengthening dollar and global crude oil prices following signs that talks between the United States and Iran have reached a deadlock,” he told ANTARA in Jakarta on Monday. The rupiah exchange rate moved lower by 4 points or 0.02 percent to Rp17,386 per US dollar compared to the previous close at Rp17,382 per US dollar. Citing Sputnik, Iran rejected the US peace proposal because it “would mean accepting excessive demands” from Washington. Iran’s ISNA news agency previously reported that Iran’s response to the US proposal focused on ending the war and ensuring the security of shipping in the Persian Gulf and the Strait of Hormuz. US President Donald Trump described Iran’s response to the US proposal to end the conflict as highly unacceptable. According to Press TV, Iran’s response emphasised the need for the US to pay war damages to Tehran. In early May, a spokesperson for Iran’s Ministry of Foreign Affairs confirmed that Tehran had received the US response to Iran’s 14-point peace proposal via Pakistan as an intermediary. Tasnim news agency reported on Sunday (11/5) that Iran’s proposal for further negotiations with the US, already conveyed to Washington, included the lifting of sanctions, full Iranian control over the Strait of Hormuz, and the release of Iran’s frozen assets abroad. On the domestic front, investors are awaiting consumer confidence survey data, which is expected to decline from 122.9 to 122. Based on these factors, the rupiah is predicted to range between Rp17,300-Rp17,400 per US dollar.