Rupiah Strengthens for 3rd Session Despite Weekly Loss Risk

2026-01-23 07:06 By Farida Husna 1 min. read

The Indonesian rupiah firmed to around IDR 16,825 per dollar on Friday, up for a third session after the central bank earlier this week kept its key rate at 4.75% for a fourth straight meeting, in line with expectations.

Policymakers said that their focus is on currency stability amid global headwinds, with Governor Perry Warjiyo adding the board would not hesitate to intervene heavily to support the rupiah, noting forex reserves climbed to a nine-month high in December 2025.

However, the currency remains on track for its first weekly drop in three weeks, as officials continue to signal scope for further easing following a cumulative 150bp cut between September 2024 and September 2025.

The outlook is underpinned by subdued inflation, projected to stay within the 1-1/2%–3-1/2% target range in 2026-2027.

Globally, the dollar index was little changed but headed for a weekly loss amid easing geopolitical tensions and expectations that the Fed will hold interest rates steady next week.



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