FX.co ★ Rupiah Nears Record Low as Easing Bets Build

The Indonesian rupiah declined to approximately IDR 16,950 per dollar on Monday, continuing its downward trend and nearing the historic low of around 16,960 experienced in April 2025. Anticipation of further monetary easing has intensified as the central bank gears up for a two-day policy meeting in the coming days. Board members have emphasized the imperative to bolster economic growth in light of fiscal pressures following a significant disaster in Sumatra late last year. From September 2024 to September 2025, Bank Indonesia reduced interest rates by a total of 150 basis points, supported by manageable inflation levels. Meanwhile, the national statistics agency is preparing to release Q4 GDP data in early February, subsequent to Q3 growth slowing to 5.04% year-on-year from 5.12% in Q2, indicative of reduced consumption despite governmental efforts to alleviate household expenditure. Internationally, the dollar index pulled back from multi-week highs after President Donald Trump threatened the imposition of new tariffs on eight European countries as part of an attempt to assert control over Greenland.