Rupiah Edges Higher on Eased Hormuz Tensions and Weak US Jobs Data
The Indonesian rupiah strengthened against the US dollar on Thursday after tensions over the Strait of Hormuz eased and weaker-than-expected US private hiring data was released. The currency closed at Rp 17,923 per US dollar, up 10 points or 0.06% from the previous session.
Ibrahim Assuaibi, director of Traze Andalan Futures and a currency analyst, said the rupiah gained after Iran announced an agreement with Oman on traffic through the Strait of Hormuz, which carries about one-fifth of the world's energy supply.
Assuaibi stated that lower energy prices prompted investors to scale back expectations for further tightening by the Federal Reserve. The US ADP National Employment Report showed private-sector hiring slowed in July, shifting market focus to the upcoming US nonfarm payrolls report for further clues on the Fed's policy path.