Rupiah Weakens Influenced by Stalemate in Resolving Iran-US Conflict

Jakarta (ANTARA) - The rupiah exchange rate closed higher today by 32 points or 0.19 percent at Rp17,229 per US dollar from the previous close at Rp17,243 per US dollar.

Currency and commodity economist Ibrahim Assuaibi assesses that the rupiah’s weakening is influenced by the stalemate in resolving the conflict between Iran and the US.

“Efforts to end the US-Iran war appear stalled, with the vital waterway of the Strait of Hormuz still largely closed, preventing energy supplies from the major oil-producing region in the Middle East from being accessed by global buyers,” he stated in a written comment in Jakarta on Tuesday.

Iran is said to have offered a new proposal to reopen the Strait of Hormuz this week, but most parties in Washington are sceptical of the proposal because it involves delaying discussions on nuclear activities in Tehran.

US President Donald Trump is unhappy with Iran’s latest proposal aimed at ending the war.

Iranian sources reveal that Tehran’s proposal avoids discussion of the nuclear programme until hostilities cease and shipping disputes in the Gulf are resolved.

“Trump’s dissatisfaction with Iran’s offer has left the conflict in deadlock, with Iran closing shipping flows through the Strait of Hormuz, which typically carries supplies equivalent to around 20 percent of global oil and gas consumption, and the US maintaining a blockade on Iranian ports,” said Ibrahim.

This week, a US Federal Reserve meeting is also scheduled, which is expected to provide more clues about monetary policy and inflation prospects in the face of disruptions due to the US-Iran war.

“The Fed is also expected to keep interest rates unchanged on Wednesday (29/4/2026),” said Ibrahim.

The Jakarta Interbank Spot Dollar Rate (JISDOR) from Bank Indonesia today also moved lower to Rp17,245 per US dollar from the previous Rp17,277 per US dollar.