RRI.CO.ID, Jakarta - Global crude oil prices are under pressure after a diplomatic breakthrough between Iran and the United States. Oil is currently trading in the range of around $70 to $73 per barrel.
Lower oil prices could help reduce inflation pressures and provide positive support for financial markets. Investors generally view cheaper energy costs as a favorable development for economic stability.
However, the weaker oil market has not dragged down the US dollar. The US Dollar Index remains strong at around 101.6, supporting the dollar against many global currencies.
During morning trading, the Indonesian rupiah edged lower amid volatile trading. The currency was trading near IDR 17,950 per US dollar.
Investors are also waiting for important US economic data that Asian markets are expected to react to in the next trading session. Concerns remain that the Federal Reserve could raise interest rates again if inflation risks persist.
Indonesia’s stock market opened lower, with the Jakarta Composite Index (IHSG) starting the session around 5,873. Despite the weak opening, the index has occasionally moved back into positive territory, in line with most Asian markets trading higher.
Meanwhile, gold prices continue to face pressure as expectations of higher interest rates remain intact. Gold was trading around $3,979 per troy ounce, equivalent to approximately IDR 2.3 million per gram.
Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)
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