FX.co ★ Rupiah Dips Further as BI Policy Rate Looms

The Indonesian rupiah remained around 16,730 per dollar on Monday, continuing its losing streak for the fifth consecutive session as the market turned its attention to the upcoming monetary policy meeting of Bank Indonesia later this week. In October, the central bank maintained its benchmark interest rate at 4.75%, following a series of cuts totaling 150 basis points since September 2024. Governor Perry Warjiyo indicated that the low inflation rates witnessed this year and anticipated for next year permit potential future reductions in interest rates. At the same time, policymakers are focused on bolstering economic growth, which Governor Warjiyo mentioned is still below the country’s potential output. Investors are also awaiting Indonesia’s third-quarter current account data, particularly after experiencing a ninth consecutive deficit, which reached the highest level in a year during the second quarter. Additionally, Indonesia’s foreign exchange reserves remained near a 14-month low in October, due to ongoing pressures from capital outflows and payments for imports. On a global scale, the dollar index edged upwards to above 99.4, as the U.S. prepared for several economic data releases that had been delayed due to the government shutdown.