US-Iran Sentiment Drives Rupiah Strengthening

The rupiah exchange rate strengthened by 82 points, or 0.46 per cent, to Rp17,778 per US dollar on Monday morning, 15 June 2026. At the previous close, the rupiah was at 17,860 per US dollar.

Doo Financial Futures currency analyst Lukman Leong said the rupiah’s appreciation was driven by peace hopes in the Middle East between the United States and Iran. “The rupiah has the potential to strengthen further against the US dollar amid rising hopes for peace in the Middle East, triggering risk-on sentiment and a decline in global crude oil prices. The US dollar index fell on reports that an interim peace deal between the US and Iran has been reached,” said Lukman.

A final agreement between Iran and the United States is reportedly set to be ratified through a United Nations Security Council resolution. Previously, Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed that a memorandum of understanding between Iran and the United States had been completed and was scheduled to be signed in Switzerland on Friday, 19 June.

Under the draft, the United States also committed not to interfere in Iran’s internal affairs and to respect the sovereignty of the Islamic Republic of Iran. Furthermore, the draft stipulates that the reopening of the Strait of Hormuz will take place within 30 days after the memorandum of understanding is signed by both parties.

Based on these factors, the rupiah is expected to move within the range of Rp17,750 to Rp17,850 per US dollar.