Rupiah May Weaken Further Amid Israel-Hamas War

The Israel-Hamas conflict that has broken out since last week has caused turmoil in the financial markets, which in turn threatens to weaken the rupiah.

Maria Elena

10 Okt 2023 - 20.42
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Rupiah May Weaken Further Amid Israel-Hamas War

An employee counts rupiah and dollars at a bank in Jakarta, Thursday (9/10/2020)./Bisnis-Arief Hermawan P.

Bisnis, JAKARTA — The Israel-Hamas conflict that has broken out since last week has caused turmoil in the financial markets, which in turn threatens to weaken the rupiah.

Concerns about war-induced economic disruptions are raised once more since Russia’s invasion of Ukraine caused energy and food prices in Europe to soar.

Now, war has broken out again in the Middle East as Hamas militants launched a sudden attack on Israel and its citizens on Saturday (10/7/2023). This attack is considered one of the most serious escalations in the Israel-Palestine conflict in seven decades. As many as 1,100 casualties have been reported from both sides.

Bhima Yudhistira, Director of the Center of Economic and Law Studies (CELIOS), believes this conflict will prompt investors to shift to safe assets. 

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Rupiah May Weaken Further Amid Israel-Hamas War

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