Jakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, highlighted the importance of maintaining financial stability to anticipate the impact of the Iran-Israel conflict, which has prompted a decline in the currency exchange rate against the US dollar.

"In the financial market, we see that the US dollar index has strengthened against (the currencies of) various countries. Therefore, we see that the government needs to maintain financial market stability," he said here on Tuesday.

In addition to the Iran-Israel conflict, he noted, the strengthening of the US dollar index has also been caused by the high bond yield and interest rates, which the US central bank is still maintaining, or the higher-for-longer policy.

Hartarto noted that the rupiah exchange rate is still better compared to the Malaysian ringgit and the Chinese yuan.

However, he said, the exchange rate of the South Korean won and the Thailand baht is still better than the rupiah.

He added that the stock price index of many countries, including Indonesia, is also weakening.

However, the minister stated, Indonesia's stock price index is still better than peer countries in Southeast Asia.

He affirmed that his ministry is continuing to coordinate with the Ministry of Finance and Bank Indonesia to prevent any further impact of the Iran-Israel conflict on the financial sector and the domestic capital market.

On Tuesday, the rupiah's exchange rate declined 328 basis points or 2.07 percent to Rp16,176 per US dollar from the previous close of Rp15,848 on April 5, 2024.

The latest hostility between Iran and Israel was triggered by an attack on the Iranian Consulate in Damascus, Syria, on April 1.

Iran launched a retaliatory attack by firing dozens of ballistic missiles and hundreds of drones at Israel on Saturday night (April 13).

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Translator: Uyu Septiyati, Raka Adji
Editor: Azis Kurmala
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