FX.co ★ Rupiah Stays Weak as Downside Momentum Persists

The Indonesian rupiah lingered near IDR 16,850 per dollar on Monday, continuing its downtrend for the seventh consecutive session and maintaining its weakest point since late April 2025. Market sentiment remained tepid due to expectations of renewed monetary easing as the central bank aims to bolster economic growth while inflation remains within the target range, following a slight increase in December. This comes after a cumulative 150-basis-point reduction in interest rates from September 2024 to September 2025. Further contributing to the conservative mood was a decline in consumer confidence in December, following a prior peak at a nine-month high, even amidst robust retail sales growth in November. However, downward pressure on the rupiah was limited by Indonesia's strong external position, evidenced by foreign exchange reserves reaching a nine-month high in December. Globally, the US dollar index slipped to approximately 98.9 after four days of consecutive gains, as traders evaluated reports indicating a criminal investigation by US federal prosecutors regarding Senate testimony linked to Fed building renovations.