JAKARTA - The rupiah exchange rate in trading Thursday, May 22, is expected to move higher against the United States (US) dollar.
To note, citing Bloomberg, on Wednesday, May 21, the rupiah spot exchange rate was closed up 0.09 percent to the level of Rp. 16,398 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.04 percent to a price level of Rp. 16,413 per US dollar.
Currency observer Ibrahim Assuaibi said Israel was preparing for a possible military attack on Iran's nuclear facilities, as the US continues to seek a diplomatic agreement with Tehran.
"The report says Israeli leaders have not made a final decision, but the possibility of Israeli attacks has increased significantly in recent months," he said in a statement, quoted Thursday, May 22.
Ibrahim added that this is happening amid ongoing US-Iran nuclear negotiations, in which Iran has reaffirmed that its uranium enrichment program is completely non-negotiable.
Meanwhile, the US has demanded Iran to halt all uranium enrichment activities, citing concerns over potential nuclear arsenal.
In addition, that the US-Iran nuclear deal under President Donald Trump that did not eliminate all Iranian uranium makes attacks more likely.
Meanwhile, regarding the Russia-Ukraine war, EU leaders condemned the resignation of United States (US) President Donald Trump after a two-hour phone call with Russian President Vladimir Putin.
"While there are claims that a peace deal is unlikely without the US, President Trump said that the US would withdraw from further talks saying it was not a war we must face. The chaos further worsens US credibility," he said.
Meanwhile, from within the country, Ibrahim said that Bank Indonesia decided to lower the benchmark interest rate by 25 basis points to the level of 5.50 percent
In addition, the central bank also lowered the Deposit Facility interest rate to 4.75 percent and the Lending Facility interest rate remained at 6.25 percent.
The decision to lower interest rates is consistent with low inflation forecasts for 2025 and 2026, and remains under control within the target of 2.5 percent plus minus 1 percent.
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Meanwhile, this decision is an effort to maintain the stability of the rupiah exchange rate in accordance with its fundamentals, as well as to contribute to sustainable economic growth.
In the future, BI will continue to direct monetary policy to maintain inflation in its targets and stability of the rupiah exchange rate according to fundamentals.
In addition, BI continues to pay close attention to space to help boost economic growth according to the dynamics that occur in the global and domestic economy.
Ibrahim estimates that the rupiah will fluctuate but close higher on trading Thursday, May 22, 2025, in the price range of IDR 16,340 - IDR 16,400 per US dollar.
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