Executive Summary

Key insights and market outlook

The Indonesian rupiah closed 0.62% weaker against the US dollar over the past week, ending at Rp16,750 per USD on Friday (19/12/2025) ¹

². The depreciation was influenced by investor uncertainty regarding delayed US inflation data release and expectations of BI rate cuts ². Analysts from Doo Financial Futures noted that the rupiah's movement was also affected by government easing policies and global economic factors.

Full Analysis

02

Deep Dive Analysis

Indonesian Rupiah Shows Weakness Against USD in Recent Week

Currency Depreciation Analysis

The Indonesian rupiah experienced a 0.62% depreciation against the US dollar over the past week, closing at Rp16,750 per USD on Friday (19/12/2025) ¹

². This movement represents a continuation of the currency's recent weakness. On a daily basis, the rupiah weakened by 0.16% compared to the previous trading day ¹.

Factors Influencing Currency Movement

Analyst Lukman Leong from Doo Financial Futures identified several key factors contributing to the rupiah's depreciation. The delayed release of US inflation data created uncertainty among investors, leading to a cautious market stance ¹

. Additionally, the anticipation of Bank Indonesia's potential rate cuts and government easing policies contributed to the currency's weakness ².

Technical and Market Observations

Based on Jisdor Bank Indonesia data, the rupiah weakened by 0.07% daily to Rp16,735 per USD and 0.49% weekly from Rp16,652 per USD ¹

. The consistent depreciation across different measurement metrics underscores the broad-based weakness in the currency.

Outlook for Coming Week

As the market enters the new week, analysts will be closely watching for further economic indicators and central bank actions. The current factors influencing the rupiah are likely to remain in focus, with potential additional catalysts emerging from global economic developments and domestic policy decisions.

References