FX.co ★ Rupiah Extends Decline Ahead of Q3 GDP Readings

The Indonesian rupiah experienced a decline for the second consecutive session, trading around 16,700 per dollar, marking its lowest point since late September. This dip occurred as the dollar index strengthened towards 100, reaching a three-month high due to diminished expectations of further easing measures in December. Domestically, Bank Indonesia Governor Perry Warjiyo indicated potential room for a future reduction in the benchmark interest rate, with the timing dependent on the rupiah's stability and the impact of prior rate cuts. The central bank had paused its aggressive rate-cutting cycle in October, following a total reduction of the benchmark rate by 150 basis points since September 2024. In the meantime, the annual inflation rate increased to 2.86% in October 2025 from 2.65% in September, the highest level since April 2024, yet it remains within Bank Indonesia's target range of 1.5% to 3.5%. Additionally, Indonesia's GDP data for the third quarter is anticipated soon, with growing concerns that President Prabowo Subianto's pro-growth strategies might lead to an increase in imports, thus exerting pressure on the current account.