FX.co ★ Rupiah Facing Headwinds Near Record Low

The Indonesian rupiah was around IDR 16,900 per dollar on Friday. It remains near its record low of 16,960 as speculation grows about further monetary easing from Bank Indonesia in their upcoming policy meeting scheduled for January 20–21. Forex stability is expected to be a primary topic of discussion. A representative from Bank Indonesia mentioned that the rupiah's weakness primarily reflects regional trends. The central bank plans to remain actively involved in the market, ensuring that the exchange rate aligns with economic fundamentals and maintains orderly market conditions. Between September 2024 and September 2025, policymakers implemented cumulative rate cuts totaling 150 basis points, supported by low inflation levels. Additionally, there is a focus on boosting economic growth, especially in light of a recent disaster in Sumatra that has added fiscal strain. For this week, the rupiah is anticipated to experience its second straight decline. On a global scale, the dollar index stayed around 99.3, buoyed by strong U.S. economic data that moderated expectations of further interest rate cuts by the Federal Reserve.