Rupiah Weakens Amid Rising Middle East Tensions

TEMPO.CO, Jakarta - The Indonesian rupiah exchange rate against the U.S. dollar on Tuesday morning weakened by 11 points, or 0.07 percent, to Rp17,405 per U.S. dollar, from the previous close of Rp17,394.

Doo Financial Futures currency analyst Lukman Leong stated that the weakening of the rupiah was triggered by the escalating situation in the Middle East.

"The rupiah has the potential to weaken again against the strengthening US dollar, in response to the escalation in the Middle East," he told ANTARA in Jakarta on Tuesday.

According to a report, Iran has attacked the United Arab Emirates (UAE). The government press service of the Emirate of Fujairah reported a fire in one of its oil zones following a drone attack, sparking fears of regional escalation, Sputnik reported.

However, a senior Iranian military official stated that Iran has never planned to attack the UAE and does not currently plan to do so.

In addition, the U.S. is said to have sunk several Iranian vessels as President Donald Trump announced “Project Freedom,” an operation to assist vessels stuck in the Strait of Hormuz and seeking to leave the area.

CENTCOM stated that military support for the operation includes guided-missile destroyers, more than 100 land- and sea-based aircraft, multi-domain unmanned systems, and 15,000 military personnel. The operation began on Monday, May 4.

Meanwhile, Iranian media outlet IRIB reported that the Iranian military prevented U.S. ships from passing through the waterway by firing two missiles at a U.S. warship.

"Weakening is expected to be limited, with investors awaiting Indonesia's Q1 GDP (Gross Domestic Product Q1-2026) data, which will be released this afternoon," he said.

Based on these factors, the rupiah is predicted to range between Rp17,350 and Rp17,450 per U.S. dollar.

Read: Rupiah Hits 17,400; Bank Indonesia Vows Market Presence

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