Rupiah Weakens Due to Uncertainty in US-Iran Peace Efforts
Jakarta (ANTARA) - The rupiah exchange rate weakened by 12 points or 0.07 percent to Rp17,223 per US dollar on Tuesday morning, from the previous close at Rp17,211 per US dollar.
Currency analyst at Doo Financial Futures, Lukman Leong, stated that the rupiah weakened due to uncertainties in peace efforts between the US and Iran.
“The rupiah is expected to weaken against the US dollar amid a shift to risk-off sentiment from uncertainties in Middle East peace efforts, following reports that the US will not accept Iran’s latest peace proposal. The US dollar index and global crude oil prices are observed to be rising again,” he told ANTARA in Jakarta on Tuesday.
Citing Anadolu, US President Donald Trump met with his national security team on Monday (27/4) to discuss Iran’s latest proposal, according to the White House.
The statement comes amid growing diplomatic efforts to revive talks between Washington and Tehran after weeks of failed wars and negotiations.
However, Trump is reportedly dissatisfied with Iran’s proposal to reopen the Strait of Hormuz and end the US-Israel war against Iran.
Trump was briefed on Tehran’s plans, which include ending the US blockade on that vital waterway, without addressing Iran’s nuclear programme.
Iran has previously rejected US demands to halt all uranium enrichment, arguing they have the right under international law to do so, and has so far refused to surrender enriched uranium.
It is unclear exactly what dissatisfied Trump, but he has long insisted on both nuclear demands. An anonymous US official said accepting Iran’s proposal would openly deny Trump’s victory.
Previously, US Secretary of State Marco Rubio stated that Tehran is “serious” about reaching a deal with Washington but emphasised that any agreement must prevent Tehran from developing nuclear weapons.
Rubio’s statement comes amid media reports showing that Iran has submitted a proposal to reopen the Strait of Hormuz in exchange for lifting the US blockade and ending the war, while postponing broader negotiations on their nuclear programme to the next stage.
Iran and the US held talks in Islamabad on 11 April but failed to reach an agreement to end the war that began on 28 February.
The negotiations followed a two-week ceasefire mediated by Pakistan on 8 April, which was later extended by US President Trump.
However, ahead of the next talks, Trump cancelled plans for special envoy Steve Witkoff and Jared Kushner to travel to Pakistan this weekend.
Efforts continue to hold another round of talks, although key issues remain obstacles, including the Strait of Hormuz, the US blockade on Iranian ports, and the future of Iran’s nuclear programme.
Based on these factors, the rupiah is predicted to range between Rp17,150-Rp17,300 per US dollar.