Rupiah Seen Strengthening on Middle East Peace Hopes
Rupiah may strengthen due to hopes for peace in the Middle East following the US cancellation of planned military escalation against Iran.
Lukman Leong, a Doo Financial Futures analyst, stated that the rupiah could potentially increase against the US dollar as a result of this development.
The decision to cancel the attacks was made after Tehran and its neighbors in the region requested time to finalize a peace agreement framework. The agreement includes the immediate reopening of the Strait of Hormuz and an end to the Iranian nuclear threat.
However, Lukman also predicted that the rupiah's strengthening will be limited due to the release of important domestic economic data later this afternoon, which is expected to show a trade deficit of $0.79 billion and rising inflation at 0.1 percent month-on-month, with year-over-year inflation falling to 3.2 percent.