FX.co ★ Rupiah Holds Ground After Forex Reserves Data

The Indonesian rupiah maintained a steady position on Friday, hovering around 16,660 per dollar. This stability followed the release of central bank data indicating a second consecutive monthly increase in foreign exchange reserves, reaching their highest point since August. This rise occurred despite active intervention efforts to stabilize the local currency amidst increased financial market uncertainty as the year-end approaches. Market participants are also looking forward to significant domestic data scheduled for release next week, which includes November's consumer sentiment and retail sales figures from October. Earlier this week, Governor Perry Warjiyo expressed Bank Indonesia's intention to guide the rupiah towards 16,500 per dollar next year, or potentially 16,400, while acknowledging the scope for additional rate cuts following a cumulative 150 basis points of policy easing since September 2024. Internationally, the US dollar index remained stable around 99, as markets anticipated the delayed release of September's Personal Consumption Expenditures (PCE) data, regarded as the Federal Reserve's preferred measure of inflation. This anticipation comes ahead of next week’s concluding Federal Open Market Committee (FOMC) meeting for the year, alongside the anticipated leadership changes at the Fed set for May 2026.