August 3, 2026 | 12:48 pm
TEMPO.CO, Jakarta - Rupiah is expected to strengthen as the US canceled a planned military escalation against Iran, according to Doo Financial Futures analyst Lukman Leong.
"The rupiah could potentially strengthen against the US dollar as hopes for peace in the Middle East emerge after [Donald] Trump said on Sunday morning (August 2) that he had canceled planned attacks on Iran following requests from Tehran and its neighbors in the region," he told ANTARA in Jakarta on Monday.
Quoting Anadolu, Trump said he delayed the attacks after Tehran and other Middle Eastern nation asked for time to finalize the framework for a peace agreement.
In a post on his social media platform, Truth Social, Trump claimed that all parties had agreed to the perimeters of a potential agreement, which includes the "immediate, complete, and total" reopening of the Strait of Hormuz and an end to the Iranian nuclear threat.
Trump said he agreed to cancel the attacks "for the future benefit of the world and, likewise, the survival of a successful and prosperous Iran." However, he emphasized that the decision depended on the ability of all parties to "rapidly make a deal."
Furthermore, the rupiah is predicted to show limited strengthening as investors await the release of important domestic economic data this afternoon.
"The trade balance is expected to return to a deficit of $0.79 billion, and inflation is projected to rise 0.1 percent month-on-month (MoM), with YoY inflation falling to 3.2 percent," said Lukman.
Based on these factors, the rupiah is expected to trade between Rp17,950 and Rp18,100 per US dollar.
Read: Why the Rupiah Is Expected to Fluctuate Next Week
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