Rupiah Slips Despite Softer Dollar

2025-12-24 05:58 By Farida Husna 1 min. read

The Indonesian rupiah weakened toward IDR 16,760 per dollar on Wednesday after briefly firming around 16,700 in the prior session, as thin holiday trading dampened activity.

Bank Indonesia’s dovish bias weighed on sentiment, even as the central bank held its key rate at 4.75% for a third meeting in mid-December, following a total of 150bps of cuts between September 2024 and September 2025.

Governor Perry Warjiyo flagged that the board still has room to ease, citing mild inflation and the need to aid growth, particularly after the late-November disaster in Sumatra.

Year-to-date, the rupiah has been among Asia’s weakest currencies, down about 4.2%.

Still, losses were capped by news that Indonesia and the U.S.

will sign a reciprocal tariff deal by late January, to be endorsed by Presidents Prabowo Subianto and Donald Trump.

Globally, the dollar index dipped to a near 12-week low around 97.7 as traders priced in potential Fed cuts next year amid easing inflation and a cooling labor market.



News Stream
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