FX.co ★ Rupiah Rises for 3rd Day, Set for First Weekly Gain in Three

The Indonesian rupiah appreciated to approximately 16,600 per dollar on Friday, marking its third consecutive daily increase after August's trade data revealed exports slightly exceeded expectations. Additionally, the annual inflation rate climbed to a 16-month high of 2.65% in September, yet remained within Bank Indonesia's target range of 1.5%–3.5%, fostering continued market confidence. Finance Minister Purbaya Yudhi Sadewa recently expressed optimism that the rupiah could further appreciate with ongoing central bank coordination. For the week, the rupiah is poised for its first weekly advance in three weeks, though it still holds the position as Asia’s weakest performing emerging-market currency in 2025, having declined approximately 3% amid 150 basis points of rate cuts and the prospect of further monetary easing. Concurrently, political uncertainties persist following the deadly protests in August that unsettled investor sentiment. On a global scale, the dollar index remained stable near 97.8, with markets largely disregarding the partial U.S. government shutdown, perceiving its short-term effects as limited.