Jakarta, ThedailyID — Indonesia’s rupiah opened weaker against the U.S. dollar on August 7, slipping to Rp17,935 per dollar as investors monitored rising geopolitical tensions in the Middle East.
The currency fell 12 points, or 0.07%, from the previous trading session.
Asian currencies showed mixed performance. The Singapore dollar gained 0.05%, the Japanese yen rose 0.04%, and the Chinese yuan added 0.03%.
The Malaysian ringgit climbed 0.04%, while the South Korean won advanced 0.48%. The Philippine peso declined 0.34%, and the Hong Kong dollar traded little changed.
Major developed-market currencies also posted modest moves. The euro, British pound, Australian dollar, Swiss franc, and Canadian dollar all edged lower against the U.S. dollar.
According to CNN Indonesia, Lukman Leong, a currency analyst at Doo Financial Futures, said higher oil prices could continue to pressure the rupiah.
“The rupiah could weaken further against the U.S. dollar as oil prices rebound on rising geopolitical tensions in the Middle East following reports that Iran may block U.S. and Israeli vessels from passing through the Strait of Hormuz,” Lukman said.
He added that losses may remain limited as investors await Indonesia’s foreign exchange reserve data, scheduled for release later on Friday.
Lukman expects the rupiah to trade between Rp17,850 and Rp17,950 per U.S. dollar during the session.
