Dollar Gains Ground Against IDR as Iran Tensions Escalate
The US Dollar (USD) has regained its footing amidst escalating tensions between Washington and Tehran. The pair, USD/IDR, traded around 17,920 during early European hours on Thursday, marking the third consecutive day of gains.
The US and Iran remain at loggerheads over a permanent end to conflicts in the Gulf, with zero progress made in reviving the interim deal or establishing an implementation timeline. President Donald Trump stated that the US has 'total control' over the strategic waterway amid heightened rhetoric between Washington and Tehran.
Indonesia's fiscal discipline remains strong, with a 23%+ year-over-year surge in tax revenue from January to July. The government is expected to unveil a consumption-focused 2027 budget proposal this Friday.
The Indonesian Rupiah may rebound as markets welcome the leadership continuity at Bank Indonesia, with President Prabowo nominating Aida Budiman for Senior Deputy Governor and Destry Damayanti as the sole candidate to succeed Governor Perry Warjiyo. Analysts at OCBC noted that Destry's nomination removes an important source of near-term uncertainty.