FX.co ★ Rupiah Edges Lower

The Indonesian rupiah experienced a minor drop, reaching close to 16,700 per dollar on Tuesday, compared to 16,660 in the previous session. This decline is largely attributed to the latest third-quarter labor data, which highlights persistent high unemployment levels, with young workers significantly affected by job cuts. Concurrently, Bank Indonesia's Governor, Perry Warjiyo, suggested that there is potential for additional interest rate reductions. The central bank plans to decrease the benchmark rate by an extra 50 basis points by the end of March 2026, following a pause in October after having already implemented a cumulative reduction of 150 basis points since September 2024. In a separate development, Indonesia’s foreign exchange reserves saw a slight increase in October, although they remain close to their lowest point in 14 months. This situation underscores ongoing challenges posed by capital outflows and import-related payments. On the global stage, the US dollar index remained relatively stable at around 99.6 following the US Senate's approval of legislation to fund the government and conclude the nation's longest shutdown. The bill is now set to proceed to the House for a vote.