Jakarta. Rupiah closed stronger on Tuesday afternoon, snapping higher despite lingering global risks, as positive trade headlines and easing uncertainty around US monetary leadership lifted sentiment.

The rupiah appreciated 44 points against the US dollar to Rp 16,754 on Feb. 3, from Rp 16,798 previously. The currency had at one point strengthened by as much as 45 points during the session.

Ibrahim Assuaibi, director of Traze Andalan Futures, said the rupiah’s gains came even as global uncertainty persisted, including unresolved geopolitical tensions between the United States and Iran.

He noted reports that US President Donald Trump said Iran would soon engage in serious talks with Washington over its nuclear program.

On the trade front, Ibrahim pointed to fresh optimism after Trump on Monday announced a deal with India that cuts US tariffs on Indian goods to 18% from 50%, in exchange for India halting purchases of Russian oil and lowering trade barriers.

“Trump announced the agreement on social media after a phone call with Indian Prime Minister Narendra Modi,” Ibrahim said in a written statement on Tuesday, adding that the positive trade sentiment helped shift the rupiah’s direction.

External sentiment also remained focused on the nomination of Kevin Warsh to lead the Federal Reserve.

“While the nomination removes a major source of uncertainty for markets and reduces demand for safe-haven assets, Warsh is also seen as a less dovish choice than markets had expected,” Ibrahim said.

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