Rupiah Extends Losses After Rate-Cut Signals, Key Data

2025-12-01 06:34 By Farida Husna 1 min. read

The Indonesian rupiah weakened toward 16,670 per dollar on the first trading day of December, slipping for a second session after Governor Perry Warjiyo reiterated that there is room for further rate cuts, even after 150bps of easing over the past year, including back-to-back moves in Oct. and Nov. On the data front, Indonesia’s trade surplus hit a seven-month low in Oct., as exports fell for the first time in 1-1/2 years amid weak global demand and rising U.S.

tariffs.

Meantime, the country's annual inflation eased to 2.72% in November but stayed near its highest since April 2024, while core inflation held steady at 2.36%, the highest since June.

The rupiah is the second-worst performer in emerging Asia this year, so far down about 3.4%.

Still, losses were capped by Warjiyo’s pledge that he aims to guide the rupiah toward 16,500 per dollar next year, or even 16,400.

Globally, the dollar index hovered near a two-week low, as traders braced for a possible final Fed rate cut this year.



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