Executive Summary

Key insights and market outlook

The Indonesian rupiah continued its decline for the seventh consecutive day, reaching Rp16,836 per USD on Friday (9/1/2026), representing a 0.23% depreciation from the previous day's Rp16,798 per USD ¹

. The rupiah's weakness is attributed to domestic fiscal concerns and global dollar strength following better-than-expected US employment data ³. Most Asian currencies also depreciated against the USD, with the South Korean won experiencing the deepest decline at 0.31% ¹.

Full Analysis

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Deep Dive Analysis

Indonesian Rupiah Extends Losses for Seventh Consecutive Day

Continued Depreciation Against USD

The Indonesian rupiah continued its downward trend for the seventh consecutive day, hitting Rp16,836 per USD on Friday (9/1/2026) at 11:46 WIB, marking a 0.23% decline from the previous day's closing rate of Rp16,798 per USD ¹

. This prolonged depreciation is attributed to a combination of domestic fiscal concerns and global dollar strength ³.

Regional Currency Performance

The rupiah's performance was not isolated, as most Asian currencies experienced depreciation against the USD. The South Korean won led the decline at 0.31%, followed by the Taiwanese dollar at 0.25%, Japanese yen at 0.24%, and Malaysian ringgit at 0.08% ¹

. Conversely, the Thai baht, Philippine peso, and Chinese yuan showed some resilience by appreciating against the USD ¹.

Market Sentiment and Economic Factors

Analysts point to several factors contributing to the rupiah's weakness, including the recent announcement of Indonesia's 2025 budget deficit expanding to 2.92% of GDP as of December 2025 ³

. Additionally, the release of better-than-expected US employment data has bolstered the dollar's strength globally. The Consumer Confidence Index also dropped 0.5 points to 123.5 in December 2025, further dampening sentiment towards the rupiah ³.

Market Outlook

The prolonged depreciation of the rupiah is likely to continue if domestic fiscal concerns persist and global dollar strength remains. Investors are advised to monitor upcoming economic indicators and policy responses closely.

References