Trump Cancels Iran Attack, Rupiah Poised to Strengthen

The Indonesian rupiah is poised for a potential strengthening against the US dollar, buoyed by the United States' decision to call off a planned military strike on Iran. Analyst Lukman Leong of Doo Financial Futures anticipates this positive shift, attributing it to hopes for peace in the Middle East following President Donald Trump's announcement on Sunday.

Trump stated that the attack was canceled due to appeals from Iran and its regional neighbors, who sought time to finalize a peace deal. In a social media post, Trump indicated that all parties had agreed on the parameters for a potential agreement, including the immediate and full reopening of the Strait of Hormuz and an end to Iran's nuclear threats. He suggested that the decision to halt the attack was made "in the interest of the future of the world and also for the successful and prosperous survival of Iran," contingent on all parties reaching a swift agreement.

Adding to the rupiah's potential gains, investors are awaiting key domestic economic data releases. Leong projected that the trade balance would likely show a deficit of $0.79 billion, while inflation is expected to rise by 0.1 percent month-on-month, with a year-on-year inflation rate decreasing to 3.2 percent. Based on these factors, the rupiah is forecast to trade within the range of Rp17,950 to Rp18,100 per US dollar.

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(Data neraca) perdagangan diperkirakan akan kembali defisit 0,79 miliar dolar dan inflasi diperkirakan naik 0,1 persen MoM (Month on Month), dan inflasi YoY (Year on Year) turun ke 3,2 persen.