Dollar Strength Weighs on Rupiah, BI Keeps Easing in View

2026-01-14 07:21 By Farida Husna 1 min. read

The Indonesian rupiah hovered around IDR 16,870 per dollar on Wednesday after briefly firming to 16,835 in the prior session, staying near multi-month lows.

Pressure persisted as the U.S.

dollar index approached its highest since early December, with inflation data reinforcing expectations that the Fed will keep rates unchanged at its upcoming meeting.

Domestically, Bank Indonesia is set to hold its first policy meeting of the year later this month, with prospects of further easing clearly open.

Officials continue to signal readiness to support growth, particularly as disaster recovery in Sumatra strains fiscal resources.

Between September 2024 and September 2025, the central bank cut rates by a cumulative 150bps, enabled by contained inflation.

Meantime, recent data showed seasonal consumption lifted retail activity in November, though sentiment remained fragile.

External headwinds also persisted, as slowing exports underscored softer demand from key partners, notably China and Japan.



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