FX.co ★ Rupiah Weakness Persists

The Indonesian rupiah was approximately 16,720 per dollar on Thursday, marking the third straight session of declines as investors approached Bank Indonesia’s upcoming policy meeting with caution. In October, the central bank held its benchmark interest rate steady at 4.75%, following cumulative reductions of 150 basis points since September 2024. However, Governor Perry Warjiyo has indicated that additional easing is anticipated, with the benchmark rate expected to be reduced by another 50 basis points by the end of March 2026 to bolster economic growth. Concurrently, Indonesia's third-quarter current account data, set to be released next week, is likely to capture attention, especially after the second-quarter results revealed a deficit for the ninth consecutive period—the largest in a year amounting to 0.8% of the GDP. For 2025, the central bank anticipates the deficit will fluctuate between 0.5% and 1.3% of GDP. On the international stage, the US dollar index remained stable around 99.5 following President Trump's approval of a short-term funding bill that concluded the longest US government shutdown on record.