Indonesian Rupiah Rebounds After 7-Day Decline

Currency Strengthens Ahead of Christmas

The Indonesian rupiah managed to gain ground on December 24, 2025, closing a 7-day losing streak against the US dollar ¹

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Source 2

https://investasi.kontan.co.id/news/rupiah-ditutup-menguat-tipis-ke-rp-16765-rabu-2412-akhiri-tren-pelemahan-7-hari

. At the close, the currency was trading at Rp16,765 per USD, representing a 0.13% gain ²

Source 2

https://investasi.kontan.co.id/news/rupiah-ditutup-menguat-tipis-ke-rp-16765-rabu-2412-akhiri-tren-pelemahan-7-hari

. The Jakarta Interbank Spot Dollar Rate (Jisdor) followed a similar pattern, strengthening 0.14% to Rp16,767 per USD ²

Source 2

https://investasi.kontan.co.id/news/rupiah-ditutup-menguat-tipis-ke-rp-16765-rabu-2412-akhiri-tren-pelemahan-7-hari

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Factors Driving Currency Movement

The rupiah's recovery was primarily driven by the broad weakening of the US dollar in global markets ahead of Christmas ¹

. This trend saw most Asian currencies appreciating against the USD, creating a favorable environment for the rupiah's rebound.

Previous Weakness and Market Context

The rupiah had been under pressure for seven consecutive trading days prior to this recovery, largely due to fiscal concerns that negatively impacted consumer confidence ¹

. These concerns had pushed the currency to its weakest level in eight months. The recent strengthening marks a significant reversal, though the overall trend remains sensitive to global economic indicators and domestic fiscal developments.

Market Implications

The rupiah's rebound is seen as a positive sign for Indonesia's currency market, potentially boosting investor sentiment. However, market watchers remain cautious about the currency's short-term trajectory given ongoing global economic uncertainties.