FX.co ★ Rupiah Lingers Near 9-Month Low

The Indonesian rupiah lingered near IDR 16,870 per US dollar on Tuesday, following a brief dip past 16,900 during the previous session. It remains close to its lowest point since late April 2025. Market sentiment remains tenuous amid anticipations of further monetary easing, as Bank Indonesia is poised for its inaugural policy meeting of the year later this month. Officials from the central bank have expressed their willingness to bolster economic growth, given that disaster recovery efforts in Sumatra continue to pressure fiscal resources. This readiness suggests the possibility of additional rate cuts, even following a cumulative reduction of 150 basis points during 2024–2025. Concurrently, domestic data has been cause for caution: December saw consumer confidence drop from a nine-month peak, while full-year vehicle sales decreased by 6.8% year-on-year, totaling 808,450 units, despite robust sales figures in December. Internationally, declining exports have indicated weaker demand from key trading partners such as China and Japan. Meanwhile, the dollar index remained steady near 99 as markets awaited U.S. inflation data scheduled for release later this week.