RRI.CO.ID, Jakarta - The Indonesian stock market successfully closed higher with a slight increase of 0.11%. The main index ended the trading day at the 6,525.478 level.
The morning trading session was very difficult for the overall stock market. However, several blue-chip companies helped the market weather the pressure and close stronger.
Meanwhile, the Indonesian Rupiah closed weaker at 17,710 per US Dollar. The currency faced a lot of negative sentiment during today's trading session.
A stable US Dollar Index and US Treasury yields kept the Rupiah moving in a tight range. The currency stayed between 17,710 and 17,750 all day.
The weak Rupiah was also weighed down by rising global crude oil prices. Brent crude oil reached around $91 per barrel this afternoon.
Investors received new updates about the United States launching another attack on Iran. This uncertain geopolitical tensions sparks investor concerns about higher inflation in the future.
Rising prices could force the Central Bank to tighten its monetary policy again. People expect higher interest rates, especially since Middle East conflicts might involve China and Russia.
As a result, world gold prices are hovering around $4,441 per troy ounce. Gold is struggling to recover because global oil prices remain elevated.
Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)
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