Executive Summary

Key insights and market outlook

The Indonesian rupiah continued its decline for the seventh consecutive day, closing at Rp16,787 per USD on December 23, 2025, representing a 0.85% depreciation over the past week ¹

². The currency's weakness is attributed to ongoing fiscal concerns and investor scrutiny ². This marks the rupiah's weakest level in eight months, with further volatility expected as year-end approaches.

Full Analysis

02

Deep Dive Analysis

Indonesian Rupiah Extends Losses for Seventh Consecutive Day

Continued Depreciation Amid Fiscal Concerns

The Indonesian rupiah maintained its downward trajectory for the seventh consecutive trading day, closing at Rp16,787 per USD on December 23, 2025 ¹

. This represents a cumulative depreciation of 0.85% over the past week, marking the currency's weakest level since April 2025 ².

Market Dynamics and Investor Sentiment

The rupiah's decline is primarily attributed to ongoing investor scrutiny of fiscal policies and macroeconomic indicators ²

. Market participants are closely monitoring government fiscal measures as they impact currency valuation. The Jisdor rate followed a similar trend, depreciating 0.83% over the same period ¹.

Comparative Performance

The rupiah's performance stands out negatively among regional currencies, with most Asian currencies showing mixed movements. Notably, the Japanese yen strengthened by 0.67% during the same period, contrasting with the rupiah's weakness ³

.

Market Implications

The rupiah's current level represents its weakest position in eight months, with market participants anticipating further volatility as the year-end approaches. Factors such as fiscal policy decisions and global economic trends are expected to continue influencing the currency's trajectory.

References