Rupiah weakens following US attack on Iran

Tensions in the Middle East have risen again following the US attack on Iran today. Jakarta (ANTARA) - The rupiah exchange rate closed weaker today by 49 points or 0.28% at Rp17,382 per US dollar from the previous close at Rp17,333 per US dollar. Head of Economics at Permata Bank Josua Pardede stated that the rupiah’s weakening has intensified in line with the heightened tensions in the Middle East following the US attack on Iran. “Tensions in the Middle East have risen again following the US attack on Iran today. As a result, global oil prices have increased again and the US dollar has appreciated broadly,” he told ANTARA in Jakarta on Friday. Quoting Sputnik, spokesman for the Khatam al-Anbiya Central Headquarters Ebrahim Zolfaghari said that the US violated the ceasefire by attacking several areas in Iran, including the Khamir port coast, the city of Sirik and Qeshm Island, as well as two Iranian ships. Iran’s armed forces immediately retaliated by attacking a US warship east of the Strait of Hormuz and south of Chabahar port, causing significant damage. In response, the US Central Command stated that the US military “eliminated incoming threats and targeted Iranian military facilities from which attacks were launched against US forces.” Throughout the week, according to Josua, the rupiah moved sideways, weakening at the start of the week and then strengthening slightly at the end of the session, due to support from China’s backing of peace negotiations in the Middle East. However, it weakened again on Friday. “In next week’s trading, the rupiah is expected to move in a limited range at Rp17,300-Rp17,425 per US dollar,” he said. Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) on Friday also moved weaker to Rp17,375 per US dollar from the previous Rp17,362 per US dollar.