Jakarta. Rupiah strengthened against the US dollar on Tuesday, with investors taking comfort in weaker-than-expected US inflation and labor market data even as concerns over the escalating US-Iran conflict continued to weigh on global sentiment.

Bloomberg data showed the rupiah closed 60 points, or 0.33%, stronger at Rp 17,888 per US dollar in the spot market. The currency had opened 11 points, or 0.06%, higher at Rp 17,937.

Traze Andalan Futures Director and currency analyst Ibrahim Assuaibi said the rupiah had initially come under pressure as markets reacted to renewed military exchanges between the United States and Iran over the weekend.

"The escalation of tensions between the US and Iran has renewed concerns over global energy shipping routes through the Strait of Hormuz," Ibrahim said.

He noted that the rupiah later recovered after recent US inflation and labor market data pointed to a weakening economy.

"However, investors remain focused on whether higher energy costs could complicate the Federal Reserve's efforts to bring inflation under control," he said.

Ibrahim expects the rupiah to trade within a range of Rp 17,750 to Rp 18,050 per US dollar this week.

According to Bloomberg data as of 4:59 p.m. Jakarta time, the Singapore dollar traded at Rp 13,870, the Japanese yen at Rp 109.96, the Australian dollar at Rp 12,561, and the euro at Rp 20,438.

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