Trump’s Anger Toward Iran Pressures Rupiah to Rp17,414 per US Dollar

JAKARTA, Jakartaweekly.com – The anger of United States President Donald Trump toward Iran has weakened the Indonesian rupiah. At the close of trading on Monday, May 11, 2026, the rupiah depreciated by 32 points to Rp17,414 per US dollar.

Economist, currency, and commodities analyst Ibrahim Assuaibi said geopolitical risks have increased after Trump described Iran’s response to the US peace proposal as completely unacceptable.

“On Sunday, Trump rejected Tehran’s latest counterproposal to Washington’s peace framework, saying Iran’s response was ‘completely unacceptable.’ The remarks dampened hopes for a near-term de-escalation in tensions in the Gulf region,” he said in a statement on Monday, May 11, 2026.

He noted that the original US proposal reportedly called for Iran to halt uranium enrichment activities for 20 years, eliminate its stockpile of highly enriched uranium, and dismantle key nuclear facilities in exchange for sanctions relief and an end to military action.

However, Iran’s response, delivered through Pakistani mediators, reportedly demanded sanctions relief, an end to the US naval presence near the Strait of Hormuz, security guarantees, and recognition of Iran’s right to continue certain nuclear activities.

Ibrahim added that reports also suggested Iran proposed reducing part of its highly enriched uranium stockpile and transferring the remainder to a third country. “Investors remain focused on the Strait of Hormuz, which has largely remained closed since the onset of the conflict,” he said.

He further noted that the geopolitical tensions come ahead of Trump’s scheduled visit to China later this week, where he is expected to meet Chinese President Xi Jinping in Beijing.

The summit is likely to focus on trade, Taiwan, and the Iran conflict. The meeting also comes as Beijing is seen as a key diplomatic player, given its economic ties with Tehran.

In addition, market attention will turn to the release of US April inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI). Retail sales data and speeches from Federal Reserve officials will also be closely watched by markets.

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