15.12.202505:38:58UTC+00Rupiah Eases Slightly

The Indonesian rupiah edged towards IDR 16,660 to the dollar on Monday, following a previous session where it steadied around IDR 16,620. This trend was influenced by moderate foreign capital outflows in the second week of December, coupled with increased caution ahead of Bank Indonesia's final policy decision of the year, which is due later this week. It is widely anticipated that the central bank will maintain interest rates at their current level for the third consecutive time. However, officials have indicated the possibility of further rate cuts to stimulate economic growth, following a 150 basis point reduction over the past year. Despite these factors, the currency's decline was somewhat mitigated by positive signs of strengthening domestic demand. Retail sales for November are forecasted to increase as the year closes, and consumer confidence has shown further improvement throughout the month. Externally, the dollar index remained weak as markets awaited postponed U.S. economic data due to the government shutdown. Additionally, uncertainties surrounding the Federal Reserve's leadership added to market caution as 2026 approaches.