JAKARTA - The rupiah exchange rate on Tuesday morning weakened 17 points or 0.10 percent to Rp17,685 per US dollar compared to the previous closing at the level of Rp17,668 per US dollar.
Doo Financial Futures currency analyst Lukman Leong stated that the rupiah has the potential to strengthen as US President Donald Trump delays an attack on Iran.
"The rupiah has the potential to strengthen against the US dollar amid easing market concerns after Trump postponed an attack on Iran," he told Antara in Jakarta, Tuesday.
Citing Anadolu, Trump decided to postpone the attack on Iran because several countries in the region said they believed an agreement to end the war completely was almost reached.
Trump said he was asked by leaders of Saudi Arabia, Qatar, the United Arab Emirates (UAE), and unnamed other countries to delay the attack because they thought they were close to reaching a ceasefire agreement with Iran.
"However, the strengthening may be limited given the still weak domestic sentiment and investor anticipation of the BI Board of Governors (Rapat Dewan Gubernur Bank Indonesia) which is expected to raise interest rates," said Lukman.
According to him, one of the reasons BI may decide to raise interest rates is the increase in US bond yields. "This increase is expected to make the rupiah attractive again," he said.
Based on these factors, the rupiah is predicted to range between IDR 17,600-IDR 17,700 per US dollar.
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