18.12.202505:24:00UTC+00Rupiah Extends Decline

The Indonesian rupiah fell beyond IDR 16,730 against the dollar on Thursday, marking its second consecutive day of losses amid growing speculation that Bank Indonesia might restart its cycle of rate cuts. The central bank maintained its policy rate at 4.75% for the third straight session on Wednesday, a decision which provided scant support to the rupiah. Governor Perry Warjiyo emphasized that there remains potential for easing monetary policy, due to a restrained inflation outlook for 2026 and the necessity to bolster economic growth. Between September 2024 and September 2025, the board has reduced rates by 150 basis points. Inflation has largely stayed within the central bank's target range of 1.5% to 3.5% for the year and is anticipated to remain stable next year, further supporting the likelihood of continued policy easing. In this context, the rupiah ranks as one of the weakest among emerging Asian currencies this year, having depreciated approximately 3.9% against the dollar. In parallel, the U.S. dollar index hovered around 98.4, ahead of the release of the November Consumer Price Index (CPI) report.