Jakarta. Rupiah weakened further toward the psychologically important Rp 18,000 per US dollar mark on Tuesday, closing at Rp 17,859 as investors awaited MSCI’s market accessibility review despite improving global sentiment from easing tensions between the United States and Iran.

The Indonesian currency fell 16 points to Rp 17,859 per US dollar at the close of trading. Earlier in the day, the rupiah had weakened by as much as 19 points, or 0.11 percent, to Rp 17,862.

According to Ibrahim Assuaibi, director of Traze Andalan Futures, the rupiah remained under pressure even as global risk sentiment improved following progress in peace negotiations and an extension of a temporary ceasefire framework between the US and Iran.

Washington recently issued a 60-day general license allowing the sale, shipment, and import of Iranian crude oil and petroleum products as part of ongoing negotiations with Tehran.

“The sanctions waiver, which also covers related banking, insurance, and shipping services, has raised expectations that Iranian exports could increase in the coming weeks, potentially boosting global supply as concerns over disruptions in the Strait of Hormuz ease,” Ibrahim said on Tuesday.

On the domestic front, investors remained cautious ahead of MSCI’s market classification review. Market sentiment had already been pressured after MSCI’s latest Global Market Accessibility Review downgraded Indonesia’s Information Flow indicator from positive to negative.

MSCI cited concerns over the transparency of public share ownership, or free-float structures, as well as indications of coordinated trading activities. The review also noted that corporate information from listed companies is often not fully available in English.

Meanwhile, the Singapore dollar was trading at Rp 13,788, the Japanese yen at Rp 110.63, the Australian dollar at Rp 12,404, and the euro at Rp 20,388.

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