FX.co ★ Rupiah Dips Ahead of Key Local Data

The Indonesian rupiah experienced a slight decline on Friday, stabilizing near 16,680 per dollar following a subdued session the preceding day. This shift occurred as investors adopted a cautious stance in anticipation of critical domestic data expected next week, particularly the November inflation and October trade figures. In October 2025, Indonesia's annual inflation accelerated to 2.86%, marking the highest point in a year and a half, yet it remained within Bank Indonesia’s target range of 1.5% to 3.5%. In contrast, September’s trade surplus fell short of expectations as imports rebounded in anticipation of the year-end, indicating stronger domestic demand but lessening external support for the currency. Over the course of the month, the rupiah weakened slightly, contributing to an approximately 3.5% decline since the start of the year. This downturn has been influenced by signals from the central bank indicating further room for monetary easing, following 150 basis points of rate cuts over the past year, including consecutive reductions in October and November. Meanwhile, on the global front, the dollar index remained stable around 99.6, halting its recent decline and poised to finish the month mostly unchanged.