FX.co ★ Rupiah Extends Gains for 5th Session

The Indonesian rupiah appreciated to approximately 16,630 per dollar on Thursday, marking its fifth consecutive gain due to consistent foreign investments. This followed Bank Indonesia's decision to maintain its policy rate at 4.75% during its meeting earlier this month. This decision comes after a total reduction of 150 basis points since September 2024. The central bank has indicated that its immediate policy goals will concentrate on stabilizing the currency and attracting portfolio investments while enhancing policy transmission. Investor confidence was further bolstered by Indonesia's current account shifting to a surplus in the third quarter—its first in two and a half years and the largest since the third quarter of 2022—fueled by a broader non-oil trade surplus and increased secondary income. Nevertheless, the currency's strength was moderated as traders exercised caution ahead of critical domestic economic data releases next week, including November's inflation and October's trade figures. On the global front, the dollar index dipped below 99.5, reaching its lowest point in nearly two weeks, marking a fourth successive session of declines amid heightened expectations of further Federal Reserve rate cuts.